Wolfspeed (NYSE:WOLF) Shares Down 14.7% – Here’s Why

Wolfspeed, Inc. (NYSE:WOLF) dropped 14.7% during trading on Wednesday . The company traded as low as $64.27 and last traded at $62.6890. Approximately 2,559,331 shares changed hands during trading, a decline of 32% from the average daily volume of 3,771,142 shares. The stock had previously closed at $73.50.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on WOLF shares. Zacks Research raised Wolfspeed to a “hold” rating in a report on Monday, February 9th. Piper Sandler reissued an “overweight” rating and issued a $20.00 price objective (up from $6.00) on shares of Wolfspeed in a research note on Thursday, February 5th. Wall Street Zen upgraded Wolfspeed from a “strong sell” rating to a “sell” rating in a report on Saturday, May 9th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Wolfspeed in a research note on Friday, March 27th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Wolfspeed presently has a consensus rating of “Hold” and an average price target of $20.00.

Wolfspeed Stock Up 3.6%

The stock’s 50-day moving average price is $35.03 and its 200-day moving average price is $24.42. The company has a market capitalization of $3.17 billion and a price-to-earnings ratio of -6.20.

Wolfspeed (NYSE:WOLF) last posted its quarterly earnings data on Tuesday, May 5th. The company reported ($3.26) earnings per share for the quarter, topping the consensus estimate of ($3.78) by $0.52. The company had revenue of $150.20 million during the quarter, compared to the consensus estimate of $150.00 million. During the same quarter last year, the firm earned ($0.72) EPS. The business’s revenue for the quarter was down 19.0% on a year-over-year basis.

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently made changes to their positions in the company. Royal Bank of Canada bought a new position in Wolfspeed in the first quarter valued at about $89,000. Lazard Asset Management LLC bought a new stake in Wolfspeed during the 1st quarter worth about $1,796,000. Sei Investments Co. bought a new stake in Wolfspeed during the 1st quarter worth about $494,000. First Trust Advisors LP lifted its position in Wolfspeed by 60.6% during the 1st quarter. First Trust Advisors LP now owns 98,874 shares of the company’s stock valued at $1,614,000 after purchasing an additional 37,313 shares during the period. Finally, Shah Capital Management lifted its position in Wolfspeed by 1,419.5% during the 1st quarter. Shah Capital Management now owns 508,948 shares of the company’s stock valued at $8,306,000 after purchasing an additional 475,454 shares during the period.

About Wolfspeed

Wolfspeed, Inc (NYSE: WOLF) is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company’s product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.