Wolfspeed (NYSE:WOLF) Shares Gap Down Following Analyst Downgrade

Wolfspeed, Inc. (NYSE:WOLF) gapped down prior to trading on Tuesday after Morgan Stanley lowered their price target on the stock from $26.00 to $23.00. The stock had previously closed at $22.95, but opened at $22.42. Morgan Stanley currently has an equal weight rating on the stock. Wolfspeed shares last traded at $21.75, with a volume of 358,954 shares trading hands.

WOLF has been the topic of a number of other reports. Deutsche Bank Aktiengesellschaft decreased their price target on Wolfspeed from $30.00 to $25.00 and set a “hold” rating on the stock in a research report on Tuesday, May 7th. Wells Fargo & Company restated an “equal weight” rating and issued a $30.00 price objective (down previously from $55.00) on shares of Wolfspeed in a research report on Wednesday, April 3rd. JPMorgan Chase & Co. reduced their target price on shares of Wolfspeed from $43.00 to $35.00 and set a “neutral” rating on the stock in a research report on Thursday, April 11th. William Blair lowered shares of Wolfspeed from an “outperform” rating to a “market perform” rating in a report on Thursday, May 2nd. Finally, TD Cowen downgraded Wolfspeed from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $40.00 to $25.00 in a report on Thursday, May 2nd. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $35.57.

Insider Activity at Wolfspeed

In other news, Director Marvin Riley purchased 1,866 shares of the business’s stock in a transaction that occurred on Tuesday, May 28th. The shares were acquired at an average cost of $27.05 per share, for a total transaction of $50,475.30. Following the transaction, the director now directly owns 13,297 shares of the company’s stock, valued at approximately $359,683.85. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.85% of the stock is currently owned by corporate insiders.

Institutional Trading of Wolfspeed

A number of large investors have recently made changes to their positions in WOLF. Boston Partners acquired a new position in shares of Wolfspeed in the 1st quarter valued at approximately $1,621,000. Teachers Retirement System of The State of Kentucky lifted its stake in Wolfspeed by 9.5% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 273,802 shares of the company’s stock valued at $8,078,000 after buying an additional 23,749 shares in the last quarter. Comerica Bank boosted its holdings in shares of Wolfspeed by 7.3% in the first quarter. Comerica Bank now owns 71,605 shares of the company’s stock valued at $2,112,000 after buying an additional 4,842 shares during the period. Tidal Investments LLC increased its position in shares of Wolfspeed by 77.7% during the first quarter. Tidal Investments LLC now owns 14,927 shares of the company’s stock worth $440,000 after acquiring an additional 6,529 shares in the last quarter. Finally, Motley Fool Asset Management LLC raised its holdings in shares of Wolfspeed by 66.9% during the first quarter. Motley Fool Asset Management LLC now owns 36,288 shares of the company’s stock worth $1,070,000 after acquiring an additional 14,542 shares during the period.

Wolfspeed Stock Down 4.7 %

The firm has a market capitalization of $2.75 billion, a P/E ratio of -3.55 and a beta of 1.60. The company has a debt-to-equity ratio of 5.55, a quick ratio of 4.00 and a current ratio of 4.58. The firm’s 50-day moving average is $25.80 and its 200 day moving average is $29.96.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings data on Wednesday, May 1st. The company reported ($0.79) EPS for the quarter, topping analysts’ consensus estimates of ($0.82) by $0.03. The business had revenue of $200.70 million for the quarter, compared to analyst estimates of $201.49 million. Wolfspeed had a negative net margin of 96.12% and a negative return on equity of 27.37%. As a group, equities research analysts predict that Wolfspeed, Inc. will post -3.13 EPS for the current fiscal year.

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.