Wolfspeed (NYSE:WOLF) Shares Gap Down – Should You Sell?

Wolfspeed, Inc. (NYSE:WOLF)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $5.95, but opened at $5.64. Wolfspeed shares last traded at $5.53, with a volume of 2,687,732 shares traded.

Analysts Set New Price Targets

WOLF has been the subject of several recent research reports. Canaccord Genuity Group decreased their price target on shares of Wolfspeed from $18.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, January 30th. The Goldman Sachs Group decreased their price objective on Wolfspeed from $17.00 to $15.00 and set a “buy” rating for the company in a report on Thursday, January 30th. Mizuho cut their target price on Wolfspeed from $10.00 to $6.00 and set an “underperform” rating on the stock in a report on Tuesday, November 19th. Bank of America decreased their target price on shares of Wolfspeed from $9.50 to $6.00 and set an “underperform” rating for the company in a research report on Thursday, January 30th. Finally, Piper Sandler reduced their price objective on shares of Wolfspeed from $18.00 to $10.00 and set an “overweight” rating on the stock in a research note on Thursday, January 30th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $14.86.

Wolfspeed Stock Down 1.0 %

The stock has a market cap of $681.35 million, a price-to-earnings ratio of -0.69 and a beta of 1.50. The stock has a 50 day simple moving average of $6.01 and a 200 day simple moving average of $8.50. The company has a quick ratio of 2.47, a current ratio of 3.15 and a debt-to-equity ratio of 17.26.

Wolfspeed (NYSE:WOLF) last released its quarterly earnings data on Wednesday, January 29th. The company reported ($1.10) earnings per share for the quarter, missing the consensus estimate of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 70.84% and a negative net margin of 125.96%. As a group, analysts expect that Wolfspeed, Inc. will post -4 earnings per share for the current fiscal year.

Institutional Trading of Wolfspeed

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WOLF. Jones Financial Companies Lllp grew its holdings in Wolfspeed by 1,240.6% during the fourth quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company’s stock worth $26,000 after buying an additional 3,548 shares in the last quarter. R Squared Ltd bought a new position in shares of Wolfspeed during the fourth quarter valued at about $28,000. Steward Partners Investment Advisory LLC boosted its holdings in Wolfspeed by 192.0% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company’s stock worth $29,000 after purchasing an additional 2,912 shares during the last quarter. KBC Group NV increased its stake in Wolfspeed by 76.5% in the 4th quarter. KBC Group NV now owns 6,064 shares of the company’s stock valued at $40,000 after buying an additional 2,629 shares during the last quarter. Finally, Allworth Financial LP lifted its position in shares of Wolfspeed by 38.1% during 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.

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.