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

Shares of Wolfspeed, Inc. (NYSE:WOLF) gapped down prior to trading on Tuesday after Mizuho lowered their price target on the stock from $10.00 to $6.00. The stock had previously closed at $7.02, but opened at $6.75. Mizuho currently has an underperform rating on the stock. Wolfspeed shares last traded at $6.72, with a volume of 1,479,146 shares.

A number of other research firms have also weighed in on WOLF. TD Cowen lowered their price objective on shares of Wolfspeed from $25.00 to $15.00 and set a “hold” rating for the company in a research note on Thursday, August 22nd. The Goldman Sachs Group lowered their price target on shares of Wolfspeed from $22.00 to $19.00 and set a “buy” rating on the stock in a report on Thursday, November 7th. Roth Mkm cut their price target on shares of Wolfspeed from $25.00 to $20.00 and set a “buy” rating on the stock in a report on Thursday, November 7th. Bank of America reduced their target price on Wolfspeed from $25.00 to $15.00 and set an “underperform” rating on the stock in a research report on Friday, August 23rd. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Wolfspeed from $20.00 to $17.00 and set a “neutral” rating for the company in a research report on Thursday, November 7th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $17.21.

Hedge Funds Weigh In On Wolfspeed

Hedge funds and other institutional investors have recently made changes to their positions in the company. ProShare Advisors LLC grew its stake in shares of Wolfspeed by 23.2% during the first quarter. ProShare Advisors LLC now owns 21,402 shares of the company’s stock worth $631,000 after purchasing an additional 4,027 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Wolfspeed by 3.6% during the 1st quarter. Vanguard Group Inc. now owns 13,079,067 shares of the company’s stock worth $385,832,000 after purchasing an additional 449,732 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its position in Wolfspeed by 14.8% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 133,395 shares of the company’s stock worth $3,935,000 after buying an additional 17,154 shares during the period. Natixis purchased a new position in Wolfspeed in the 1st quarter valued at approximately $875,000. Finally, EntryPoint Capital LLC increased its position in shares of Wolfspeed by 149.4% in the first quarter. EntryPoint Capital LLC now owns 3,295 shares of the company’s stock valued at $97,000 after buying an additional 1,974 shares in the last quarter.

Wolfspeed Stock Down 8.2 %

The company has a debt-to-equity ratio of 9.82, a current ratio of 3.14 and a quick ratio of 2.54. The firm’s 50-day moving average price is $10.77 and its 200 day moving average price is $17.09. The firm has a market capitalization of $823.11 million, a price-to-earnings ratio of -1.08 and a beta of 1.46.

Wolfspeed (NYSE:WOLF) last posted its quarterly earnings data on Wednesday, August 21st. The company reported ($1.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.03) by ($0.03). Wolfspeed had a negative return on equity of 49.86% and a negative net margin of 93.31%. The business had revenue of $200.70 million for the quarter, compared to analyst estimates of $201.11 million. Sell-side analysts expect that Wolfspeed, Inc. will post -4.13 EPS for the current 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.