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

Wolfspeed, Inc. (NYSE:WOLF) shares gapped down prior to trading on Thursday after Susquehanna lowered their price target on the stock from $11.00 to $7.00. The stock had previously closed at $6.18, but opened at $5.90. Susquehanna currently has a neutral rating on the stock. Wolfspeed shares last traded at $5.86, with a volume of 1,603,217 shares.

A number of other research firms have also weighed in on WOLF. The Goldman Sachs Group reduced their price objective on Wolfspeed from $19.00 to $17.00 and set a “buy” rating for the company in a research report on Thursday, January 16th. Morgan Stanley lifted their price target on Wolfspeed from $10.00 to $15.00 and gave the stock an “equal weight” rating in a research report on Wednesday, October 16th. Canaccord Genuity Group cut their price objective on shares of Wolfspeed from $25.00 to $18.00 and set a “buy” rating on the stock in a research report on Thursday, November 7th. JPMorgan Chase & Co. decreased 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. Finally, Piper Sandler reiterated an “overweight” rating and set a $18.00 price target (down previously from $20.00) on shares of Wolfspeed in a report on Thursday, November 7th. Three equities research analysts have rated the stock with a sell rating, ten have given a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Wolfspeed has an average rating of “Hold” and a consensus target price of $16.79.

Insider Transactions at Wolfspeed

In related news, Chairman Thomas H. Werner purchased 37,500 shares of the business’s stock in a transaction dated Wednesday, November 20th. The shares were acquired at an average cost of $6.53 per share, for a total transaction of $244,875.00. Following the acquisition, the chairman now owns 108,549 shares of the company’s stock, valued at $708,824.97. The trade was a 52.78 % increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Glenda Dorchak acquired 3,592 shares of Wolfspeed stock in a transaction that occurred on Friday, November 22nd. The shares were purchased at an average price of $8.33 per share, with a total value of $29,921.36. Following the purchase, the director now owns 18,688 shares in the company, valued at $155,671.04. This represents a 23.79 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 78,067 shares of company stock worth $524,747 in the last three months. Insiders own 0.84% of the company’s stock.

Hedge Funds Weigh In On Wolfspeed

Hedge funds and other institutional investors have recently bought and sold shares of the business. Iridian Asset Management LLC CT increased its stake in shares of Wolfspeed by 319.9% in the third quarter. Iridian Asset Management LLC CT now owns 521,158 shares of the company’s stock worth $5,055,000 after acquiring an additional 397,057 shares during the period. Public Sector Pension Investment Board purchased a new stake in Wolfspeed in the third quarter valued at $2,590,000. Primecap Management Co. CA grew its position in Wolfspeed by 5.0% during the 3rd quarter. Primecap Management Co. CA now owns 6,349,180 shares of the company’s stock worth $61,587,000 after purchasing an additional 303,870 shares during the period. Principal Financial Group Inc. boosted its stake in shares of Wolfspeed by 41.4% in the third quarter. Principal Financial Group Inc. now owns 592,599 shares of the company’s stock worth $5,748,000 after buying an additional 173,409 shares during the last quarter. Finally, Rheos Capital Works Inc. grew its holdings in Wolfspeed by 140.8% during the third quarter. Rheos Capital Works Inc. now owns 427,500 shares of the company’s stock worth $4,147,000 after acquiring an additional 250,000 shares during the period.

Wolfspeed Stock Performance

The company has a market capitalization of $758.47 million, a PE ratio of -1.00 and a beta of 1.43. The firm has a 50-day moving average of $7.56 and a two-hundred day moving average of $11.38. The company has a quick ratio of 2.54, a current ratio of 3.14 and a debt-to-equity ratio of 9.82.

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.