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

Wolfspeed, Inc. (NYSE:WOLF)’s stock price fell 6.4% on Thursday following a dissappointing earnings announcement. The stock traded as low as $5.56 and last traded at $5.62. 15,456,522 shares were traded during mid-day 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 the consensus estimate 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 have recently commented on WOLF shares. Piper Sandler reduced their target price on shares of Wolfspeed from $18.00 to $10.00 and set an “overweight” rating for the company in a report on Thursday. Canaccord Genuity Group reduced their target price on shares of Wolfspeed from $18.00 to $10.00 and set a “buy” rating for the company in a report on Thursday. StockNews.com raised shares of Wolfspeed to a “sell” rating in a report on Monday, January 6th. Roth Mkm reduced their target price on shares of Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a report on Thursday, November 7th. Finally, Morgan Stanley upped their target price on shares of Wolfspeed from $10.00 to $15.00 and gave the company an “equal weight” rating in a report on Wednesday, October 16th. Three equities research 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 MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $14.86.

Insider Activity

In other news, Director Darren R. Jackson bought 36,975 shares of the stock in a transaction on Wednesday, November 20th. The stock was purchased at an average cost of $6.76 per share, with a total value of $249,951.00. Following the purchase, the director now owns 85,996 shares of the company’s stock, valued at approximately $581,332.96. The trade was a 75.43 % increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, Chairman Thomas H. Werner bought 37,500 shares of the stock in a transaction on Wednesday, November 20th. The stock was purchased 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 directly owns 108,549 shares in the company, valued at $708,824.97. This trade represents a 52.78 % increase in their position. The disclosure for this purchase can be found here. Insiders have acquired 78,067 shares of company stock worth $524,747 over the last ninety days. 0.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Wolfspeed

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

Wolfspeed Trading Up 0.3 %

The firm has a market cap of $779.94 million, a price-to-earnings ratio of -0.80 and a beta of 1.43. The business’s 50 day moving average price is $7.44 and its 200-day moving average price is $10.58. The company has a debt-to-equity ratio of 9.82, a quick ratio of 2.54 and a current ratio of 3.14.

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.