Wolfspeed (NYSE:WOLF) Shares Gap Down – Here’s Why

Wolfspeed, Inc. (NYSE:WOLF) gapped down prior to trading on Tuesday . The stock had previously closed at $15.39, but opened at $15.03. Wolfspeed shares last traded at $15.01, with a volume of 1,387,822 shares changing hands.

Wall Street Analysts Forecast Growth

WOLF has been the topic of several recent research reports. The Goldman Sachs Group lowered their target price on shares of Wolfspeed from $48.00 to $28.00 and set a “buy” rating on the stock in a report on Thursday, August 22nd. Morgan Stanley lifted their price objective on Wolfspeed from $10.00 to $15.00 and gave the company an “equal weight” rating in a report on Wednesday, October 16th. Deutsche Bank Aktiengesellschaft cut their target price on Wolfspeed from $17.00 to $14.00 and set a “hold” rating for the company in a research report on Thursday, August 22nd. Bank of America dropped their price target on Wolfspeed from $25.00 to $15.00 and set an “underperform” rating for the company in a research note on Friday, August 23rd. Finally, TD Cowen cut 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. Two 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. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $22.43.

Wolfspeed Price Performance

The business has a 50 day moving average price of $10.67 and a 200-day moving average price of $19.05. The company has a market capitalization of $1.86 billion, a price-to-earnings ratio of -2.29 and a beta of 1.52. The company has a debt-to-equity ratio of 6.99, a quick ratio of 3.85 and a current ratio of 4.51.

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

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently added to or reduced their stakes in WOLF. Louisiana State Employees Retirement System boosted its position in shares of Wolfspeed by 70.8% during the third quarter. Louisiana State Employees Retirement System now owns 60,800 shares of the company’s stock valued at $590,000 after buying an additional 25,200 shares during the last quarter. Eastern Bank bought a new stake in shares of Wolfspeed in the 3rd quarter worth $27,000. Everence Capital Management Inc. purchased a new stake in shares of Wolfspeed in the third quarter valued at about $193,000. Slow Capital Inc. boosted its holdings in Wolfspeed by 53.2% during the third quarter. Slow Capital Inc. now owns 210,496 shares of the company’s stock worth $2,042,000 after purchasing an additional 73,107 shares during the last quarter. Finally, Rheos Capital Works Inc. lifted its position in shares of Wolfspeed by 140.8% during the 3rd quarter. Rheos Capital Works Inc. now owns 427,500 shares of the company’s stock worth $4,147,000 after buying an additional 250,000 shares in 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.