Wolfspeed (NYSE:WOLF) Shares Gap Down – Here’s Why

Wolfspeed, Inc. (NYSE:WOLF)’s share price gapped down prior to trading on Monday . The stock had previously closed at $5.95, but opened at $5.64. Wolfspeed shares last traded at $5.53, with a volume of 2,687,732 shares trading hands.

Analyst Ratings Changes

Several equities research analysts have commented on WOLF shares. Mizuho cut their price target on shares of Wolfspeed from $10.00 to $6.00 and set an “underperform” rating on the stock in a research report on Tuesday, November 19th. Canaccord Genuity Group reduced their price target on Wolfspeed from $18.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, January 30th. Piper Sandler lowered their price target on Wolfspeed from $18.00 to $10.00 and set an “overweight” rating on the stock in a research report on Thursday, January 30th. StockNews.com raised Wolfspeed to a “sell” rating in a report on Monday, January 6th. Finally, The Goldman Sachs Group lowered their target price on shares of Wolfspeed from $17.00 to $15.00 and set a “buy” rating on the stock in a report on Thursday, January 30th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $14.86.

Wolfspeed Trading Down 1.0 %

The company has a debt-to-equity ratio of 17.26, a quick ratio of 2.47 and a current ratio of 3.15. The stock has a market capitalization of $681.35 million, a price-to-earnings ratio of -0.69 and a beta of 1.50. The business has a fifty day simple moving average of $6.01 and a 200 day simple moving average of $8.50.

Wolfspeed (NYSE:WOLF) last announced its earnings results on Wednesday, January 29th. The company reported ($1.10) EPS for the quarter, missing the consensus estimate of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 70.84% and a negative net margin of 125.96%. As a group, research analysts expect that Wolfspeed, Inc. will post -4 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Wolfspeed by 1.9% during the 4th quarter. Vanguard Group Inc. now owns 15,924,290 shares of the company’s stock valued at $106,056,000 after purchasing an additional 299,304 shares during the last quarter. Primecap Management Co. CA boosted its position in Wolfspeed by 2.7% in the fourth quarter. Primecap Management Co. CA now owns 6,519,164 shares of the company’s stock valued at $43,418,000 after buying an additional 169,984 shares in the last quarter. Neuberger Berman Group LLC grew its stake in shares of Wolfspeed by 4.3% during the fourth quarter. Neuberger Berman Group LLC now owns 2,506,626 shares of the company’s stock worth $16,701,000 after buying an additional 104,042 shares during the last quarter. Two Sigma Advisers LP increased its holdings in shares of Wolfspeed by 813.6% during the third quarter. Two Sigma Advisers LP now owns 2,458,600 shares of the company’s stock worth $23,848,000 after buying an additional 2,189,500 shares in the last quarter. Finally, Frontier Capital Management Co. LLC lifted its stake in shares of Wolfspeed by 94.2% in the 4th quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company’s stock valued at $13,658,000 after acquiring an additional 995,020 shares during the last quarter.

About Wolfspeed

Wolfspeed, Inc operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications.