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

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

The company reported ($1.10) EPS for the quarter, missing the consensus estimate of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 49.86% and a negative net margin of 93.31%.

Analyst Ratings Changes

Several research analysts recently commented on WOLF shares. JPMorgan Chase & Co. reduced their target price on shares of Wolfspeed from $20.00 to $17.00 and set a “neutral” rating for the company in a report on Thursday, November 7th. Piper Sandler cut their price target on shares of Wolfspeed from $18.00 to $10.00 and set an “overweight” rating for the company in a research note on Thursday. Mizuho cut their price target on shares of Wolfspeed from $10.00 to $6.00 and set an “underperform” rating for the company in a research note on Tuesday, November 19th. Susquehanna cut their price target on shares of Wolfspeed from $11.00 to $7.00 and set a “neutral” rating for the company in a research note on Wednesday, January 22nd. Finally, Roth Mkm cut their price target on shares of Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a research note on Thursday, November 7th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $16.07.

Insider Activity at Wolfspeed

In other news, Director Glenda Dorchak purchased 3,592 shares of the company’s stock in a transaction dated Friday, November 22nd. The shares were purchased at an average price of $8.33 per share, for a total transaction of $29,921.36. Following the transaction, the director now owns 18,688 shares of the company’s stock, valued at approximately $155,671.04. This trade represents a 23.79 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Darren R. Jackson purchased 36,975 shares of the company’s stock in a transaction dated Wednesday, November 20th. The stock was purchased at an average price of $6.76 per share, for a total transaction of $249,951.00. Following the transaction, 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 position. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 78,067 shares of company stock valued at $524,747. 0.84% of the stock is owned by insiders.

Institutional Trading of Wolfspeed

Several hedge funds have recently modified their holdings of WOLF. New York State Teachers Retirement System increased its stake in Wolfspeed by 2.4% during the 4th quarter. New York State Teachers Retirement System now owns 148,784 shares of the company’s stock valued at $991,000 after purchasing an additional 3,500 shares in the last quarter. Bright Futures Wealth Management LLC. bought a new stake in shares of Wolfspeed in the 4th quarter worth $81,000. Vontobel Holding Ltd. grew its stake in shares of Wolfspeed by 74.6% in the 4th quarter. Vontobel Holding Ltd. now owns 65,578 shares of the company’s stock worth $437,000 after acquiring an additional 28,013 shares in the last quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors bought a new stake in shares of Wolfspeed in the 4th quarter worth $152,000. Finally, Newbridge Financial Services Group Inc. bought a new stake in shares of Wolfspeed in the 4th quarter worth $52,000.

Wolfspeed Stock Performance

The company’s 50 day moving average price is $7.50 and its 200-day moving average price is $10.74. 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 $717.99 million, a P/E ratio of -0.94 and a beta of 1.43.

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.