Wolfspeed (NYSE:WOLF) Trading Down 6.4% on Disappointing Earnings

Wolfspeed, Inc. (NYSE:WOLF)’s share price fell 6.4% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $5.56 and last traded at $5.62. 15,456,522 shares traded hands during trading, a decline of 17% from the average session volume of 18,625,893 shares. The stock had previously closed at $6.00.

The company reported ($1.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.90) by ($0.20). Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 60.94%.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Piper Sandler lowered their price objective on shares of Wolfspeed from $18.00 to $10.00 and set an “overweight” rating for the company in a research report on Thursday. The Goldman Sachs Group lowered their price objective on shares of Wolfspeed from $17.00 to $15.00 and set a “buy” rating for the company in a research report on Thursday. Roth Mkm lowered their price objective on shares of Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a research report on Thursday, November 7th. Bank of America lowered their price objective on shares of Wolfspeed from $9.50 to $6.00 and set an “underperform” rating for the company in a research report on Thursday. Finally, StockNews.com raised shares of Wolfspeed to a “sell” rating in a research report on Monday, January 6th. Three analysts have rated the stock with a sell rating, ten have given a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $14.86.

Insider Transactions at Wolfspeed

In other Wolfspeed news, Director Darren R. Jackson bought 36,975 shares of the business’s stock in a transaction that occurred on Wednesday, November 20th. The stock was acquired at an average cost of $6.76 per share, with a total value of $249,951.00. Following the completion of the purchase, the director now directly owns 85,996 shares in the company, valued at approximately $581,332.96. This trade represents a 75.43 % increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, Chairman Thomas H. Werner bought 37,500 shares of the business’s stock in a transaction that occurred on Wednesday, November 20th. The shares were acquired at an average cost of $6.53 per share, with a total value of $244,875.00. Following the completion of the purchase, the chairman now owns 108,549 shares of the company’s stock, valued at approximately $708,824.97. The trade was a 52.78 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders purchased 78,067 shares of company stock valued at $524,747. Company insiders own 0.84% of the company’s stock.

Institutional Investors Weigh In On Wolfspeed

Several hedge funds have recently made changes to their positions in the company. Eastern Bank acquired a new position in Wolfspeed in the 3rd quarter valued at approximately $27,000. R Squared Ltd bought a new position in shares of Wolfspeed during the 4th quarter worth about $28,000. GAMMA Investing LLC lifted its holdings in shares of Wolfspeed by 416.4% during the 3rd quarter. GAMMA Investing LLC now owns 4,544 shares of the company’s stock worth $44,000 after acquiring an additional 3,664 shares during the period. KBC Group NV increased its position in shares of Wolfspeed by 76.5% during the 4th quarter. KBC Group NV now owns 6,064 shares of the company’s stock worth $40,000 after purchasing an additional 2,629 shares in the last quarter. Finally, Allworth Financial LP increased its position in shares of Wolfspeed by 38.1% during the 4th quarter. Allworth Financial LP now owns 7,060 shares of the company’s stock worth $44,000 after purchasing an additional 1,949 shares in the last quarter.

Wolfspeed Stock Up 0.3 %

The company has a debt-to-equity ratio of 9.82, a quick ratio of 2.54 and a current ratio of 3.14. The stock has a market cap of $779.94 million, a price-to-earnings ratio of -0.80 and a beta of 1.43. The firm’s 50-day simple moving average is $7.44 and its two-hundred day simple moving average is $10.58.

Wolfspeed Company Profile

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.