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

Shares of Wolfspeed, Inc. (NYSE:WOLF) gapped down before the market opened on Monday . The stock had previously closed at $3.90, but opened at $3.69. Wolfspeed shares last traded at $3.57, with a volume of 4,312,200 shares traded.

Analyst Upgrades and Downgrades

Several research firms have recently commented on WOLF. Canaccord Genuity Group lowered 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. Bank of America lowered their price target on Wolfspeed from $9.50 to $6.00 and set an “underperform” rating for the company in a research report on Thursday, January 30th. JPMorgan Chase & Co. restated an “underweight” rating on shares of Wolfspeed in a research report on Friday, May 9th. Susquehanna lowered their price target on Wolfspeed from $11.00 to $7.00 and set a “neutral” rating for the company in a research report on Wednesday, January 22nd. Finally, Citigroup restated a “sell” rating and set a $3.00 price target (down from $7.00) on shares of Wolfspeed in a research report on Friday, May 9th. Five investment analysts have rated the stock with a sell rating, six have given a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $11.15.

Wolfspeed Trading Down 9.7%

The stock has a market cap of $490.23 million, a price-to-earnings ratio of -0.41 and a beta of 1.62. The business’s fifty day simple moving average is $3.63 and its 200 day simple moving average is $5.93. The company has a debt-to-equity ratio of 17.26, a current ratio of 3.15 and a quick ratio of 2.47.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.82) by $0.10. Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. The company had revenue of $185.40 million during the quarter, compared to the consensus estimate of $190.03 million. During the same quarter in the previous year, the company posted ($0.62) earnings per share. The company’s revenue for the quarter was down 7.6% compared to the same quarter last year. On average, research analysts predict that Wolfspeed, Inc. will post -4 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Neill Reynolds sold 13,909 shares of the company’s stock in a transaction that occurred on Monday, April 28th. The shares were sold at an average price of $3.99, for a total value of $55,496.91. Following the completion of the sale, the chief financial officer now owns 195,257 shares in the company, valued at approximately $779,075.43. This represents a 6.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.84% of the stock is owned by company insiders.

Hedge Funds Weigh In On Wolfspeed

Large investors have recently made changes to their positions in the business. Jones Financial Companies Lllp grew its stake in shares of Wolfspeed by 1,240.6% in the 4th quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company’s stock valued at $26,000 after buying an additional 3,548 shares in the last quarter. R Squared Ltd bought a new stake in shares of Wolfspeed in the 4th quarter valued at approximately $28,000. N.E.W. Advisory Services LLC bought a new stake in shares of Wolfspeed in the 1st quarter valued at approximately $28,000. Steward Partners Investment Advisory LLC grew its stake in shares of Wolfspeed by 192.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company’s stock valued at $29,000 after buying an additional 2,912 shares in the last quarter. Finally, Beacon Capital Management LLC bought a new stake in shares of Wolfspeed in the 1st quarter valued at approximately $31,000.

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.