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

Shares of Wolfspeed, Inc. (NYSE:WOLF) gapped down before the market opened on Thursday . The stock had previously closed at $9.98, but opened at $9.72. Wolfspeed shares last traded at $9.23, with a volume of 1,014,810 shares.

Analysts Set New Price Targets

WOLF has been the subject of a number of recent analyst reports. Canaccord Genuity Group cut their price objective on Wolfspeed from $45.00 to $25.00 and set a “buy” rating for the company in a research report on Thursday, August 29th. New Street Research cut shares of Wolfspeed from a “buy” rating to a “neutral” rating and set a $18.00 price objective for the company. in a research report on Wednesday, August 7th. Piper Sandler dropped their target price on shares of Wolfspeed from $35.00 to $20.00 and set an “overweight” rating on the stock in a research report on Thursday, August 22nd. Morgan Stanley reduced their price target on shares of Wolfspeed from $23.00 to $15.00 and set an “equal weight” rating for the company in a research report on Thursday, August 15th. Finally, Mizuho cut Wolfspeed from a “neutral” rating to an “underperform” rating and lowered their price objective for the stock from $17.00 to $8.00 in a report on Thursday, October 3rd. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $22.43.

Wolfspeed Price Performance

The company has a debt-to-equity ratio of 6.99, a quick ratio of 3.85 and a current ratio of 4.51. The stock’s 50 day simple moving average is $10.40 and its two-hundred day simple moving average is $19.85. The firm has a market capitalization of $1.46 billion, a PE ratio of -1.65 and a beta of 1.52.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings data on Wednesday, August 21st. The company reported ($1.06) EPS for the quarter, missing analysts’ consensus estimates of ($1.03) by ($0.03). The company had revenue of $200.70 million for the quarter, compared to analysts’ expectations of $201.11 million. Wolfspeed had a negative return on equity of 37.76% and a negative net margin of 107.93%. On average, sell-side analysts forecast that Wolfspeed, Inc. will post -3.84 EPS for the current year.

Hedge Funds Weigh In On Wolfspeed

A number of institutional investors have recently bought and sold shares of WOLF. Vanguard Group Inc. raised its position in Wolfspeed by 3.6% in the first quarter. Vanguard Group Inc. now owns 13,079,067 shares of the company’s stock valued at $385,832,000 after purchasing an additional 449,732 shares during the period. Primecap Management Co. CA lifted its position in Wolfspeed by 15.3% in the second quarter. Primecap Management Co. CA now owns 6,045,310 shares of the company’s stock valued at $137,591,000 after buying an additional 800,540 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in Wolfspeed by 14.3% during the second quarter. Bank of New York Mellon Corp now owns 1,177,332 shares of the company’s stock worth $26,796,000 after buying an additional 147,527 shares during the period. Samlyn Capital LLC increased its position in shares of Wolfspeed by 51.6% during the second quarter. Samlyn Capital LLC now owns 1,009,137 shares of the company’s stock valued at $22,968,000 after acquiring an additional 343,277 shares during the last quarter. Finally, Janus Henderson Group PLC increased its position in shares of Wolfspeed by 2.0% during the first quarter. Janus Henderson Group PLC now owns 720,961 shares of the company’s stock valued at $21,265,000 after acquiring an additional 14,007 shares during the last quarter.

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.