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

Wolfspeed, Inc. (NYSE:WOLF)’s stock price 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 trading hands.

A number of other research firms have also recently issued reports on WOLF. New Street Research cut Wolfspeed from a “buy” rating to a “neutral” rating and set a $18.00 price target for the company. in a report on Wednesday, August 7th. Piper Sandler reaffirmed an “overweight” rating and issued a $18.00 target price (down from $20.00) on shares of Wolfspeed in a research note on Thursday, November 7th. TD Cowen lowered their price target on shares of Wolfspeed from $25.00 to $15.00 and set a “hold” rating for the company in a report on Thursday, August 22nd. Susquehanna reduced their price objective on Wolfspeed from $16.00 to $11.00 and set a “neutral” rating on the stock in a report on Thursday, November 7th. Finally, The Goldman Sachs Group decreased their price objective on Wolfspeed from $22.00 to $19.00 and set a “buy” rating on the stock in a research report on Thursday, November 7th. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $17.21.

Hedge Funds Weigh In On Wolfspeed

Several hedge funds have recently added to or reduced their stakes in WOLF. Virtu Financial LLC boosted its position in shares of Wolfspeed by 160.8% during the third quarter. Virtu Financial LLC now owns 58,560 shares of the company’s stock worth $568,000 after purchasing an additional 36,105 shares in the last quarter. Aequim Alternative Investments LP raised its stake in Wolfspeed by 20.2% during the 3rd quarter. Aequim Alternative Investments LP now owns 196,836 shares of the company’s stock worth $1,909,000 after buying an additional 33,036 shares during the period. M&T Bank Corp lifted its holdings in Wolfspeed by 120.5% during the third quarter. M&T Bank Corp now owns 64,222 shares of the company’s stock worth $623,000 after acquiring an additional 35,101 shares in the last quarter. XTX Topco Ltd grew its stake in Wolfspeed by 145.4% in the third quarter. XTX Topco Ltd now owns 48,914 shares of the company’s stock valued at $474,000 after acquiring an additional 28,983 shares during the period. Finally, Two Sigma Advisers LP increased its holdings in shares of Wolfspeed by 813.6% in the third quarter. Two Sigma Advisers LP now owns 2,458,600 shares of the company’s stock worth $23,848,000 after acquiring an additional 2,189,500 shares in the last quarter.

Wolfspeed Price Performance

The company has a market capitalization of $822.47 million, a P/E ratio of -1.08 and a beta of 1.46. The company has a quick ratio of 2.54, a current ratio of 3.14 and a debt-to-equity ratio of 9.82. The firm has a fifty day simple moving average of $10.74 and a 200-day simple moving average of $17.01.

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