Wolfspeed (NYSE:WOLF) Trading Down 6.4% Following Weak Earnings

Wolfspeed, Inc. (NYSE:WOLF)’s share price fell 6.4% on Thursday after the company announced weaker than expected quarterly earnings. The company 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 return on equity of 49.86% and a negative net margin of 93.31%.

Analyst Ratings Changes

WOLF has been the subject of several research reports. Roth Mkm cut their price target on Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a research note on Thursday, November 7th. StockNews.com upgraded Wolfspeed to a “sell” rating in a research note on Monday, January 6th. Piper Sandler cut their target price on Wolfspeed from $18.00 to $10.00 and set an “overweight” rating for the company in a research note on Thursday. Susquehanna cut their target price on Wolfspeed from $11.00 to $7.00 and set a “neutral” rating for the company in a research note on Wednesday, January 22nd. Finally, Mizuho cut their target price on Wolfspeed from $10.00 to $6.00 and set an “underperform” rating for the company in a research note on Tuesday, November 19th. Three equities research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $14.86.

Insider Activity

In other news, Director Darren R. Jackson acquired 36,975 shares of the firm’s stock in a transaction that occurred on Wednesday, November 20th. The shares were bought at an average cost of $6.76 per share, with a total value of $249,951.00. Following the acquisition, the director now owns 85,996 shares in the company, valued at approximately $581,332.96. This represents a 75.43 % increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Thomas H. Werner purchased 37,500 shares of the firm’s stock in a transaction on Wednesday, November 20th. The stock was bought at an average cost of $6.53 per share, for a total transaction of $244,875.00. Following the completion of the purchase, the chairman now directly owns 108,549 shares in the company, valued at approximately $708,824.97. This trade represents a 52.78 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders acquired 78,067 shares of company stock worth $524,747. 0.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of WOLF. Allworth Financial LP increased its position in Wolfspeed by 38.1% in the fourth 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. Rhumbline Advisers boosted its stake in shares of Wolfspeed by 5.1% in the fourth quarter. Rhumbline Advisers now owns 309,144 shares of the company’s stock worth $2,059,000 after acquiring an additional 15,078 shares during the period. New York State Teachers Retirement System boosted its stake in Wolfspeed by 2.4% during the fourth quarter. New York State Teachers Retirement System now owns 148,784 shares of the company’s stock valued at $991,000 after buying an additional 3,500 shares during the last quarter. Bright Futures Wealth Management LLC. bought a new position in Wolfspeed during the fourth quarter valued at approximately $81,000. Finally, Vontobel Holding Ltd. boosted its stake in Wolfspeed by 74.6% during the fourth quarter. Vontobel Holding Ltd. now owns 65,578 shares of the company’s stock valued at $437,000 after buying an additional 28,013 shares during the last quarter.

Wolfspeed Stock Performance

The company has a debt-to-equity ratio of 9.82, a current ratio of 3.14 and a quick ratio of 2.54. The business has a 50-day simple moving average of $7.49 and a 200-day simple moving average of $10.71. The firm has a market capitalization of $778.39 million, a PE ratio of -1.02 and a beta of 1.43.

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.