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

Wolfspeed, Inc. (NYSE:WOLF)’s share price dropped 6.4% on Thursday following a dissappointing earnings announcement. The company traded as low as $5.56 and last traded at $5.62. Approximately 15,456,522 shares traded hands during trading, a decline of 17% from the average daily 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 net margin of 93.31% and a negative return on equity of 49.86%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on WOLF. The Goldman Sachs Group lowered their price target on Wolfspeed from $17.00 to $15.00 and set a “buy” rating for the company in a research report on Thursday. 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 report on Monday, January 6th. Piper Sandler lowered their target price on Wolfspeed from $18.00 to $10.00 and set an “overweight” rating on the stock in a report on Thursday. Finally, Morgan Stanley upped 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. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $14.86.

Insider Transactions at Wolfspeed

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

Hedge Funds Weigh In On Wolfspeed

Large investors have recently bought and sold shares of the stock. Two Sigma Advisers LP boosted its stake in shares of Wolfspeed by 813.6% during the third quarter. Two Sigma Advisers LP now owns 2,458,600 shares of the company’s stock worth $23,848,000 after buying an additional 2,189,500 shares during the period. Connor Clark & Lunn Investment Management Ltd. boosted its stake in shares of Wolfspeed by 1,158.0% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 833,201 shares of the company’s stock worth $8,082,000 after buying an additional 766,971 shares during the period. Erste Asset Management GmbH acquired a new stake in shares of Wolfspeed during the third quarter worth about $4,542,000. Iridian Asset Management LLC CT boosted its stake in shares of Wolfspeed by 319.9% during the third quarter. Iridian Asset Management LLC CT now owns 521,158 shares of the company’s stock worth $5,055,000 after buying an additional 397,057 shares during the period. Finally, Yong Rong HK Asset Management Ltd acquired a new stake in shares of Wolfspeed during the third quarter worth about $2,988,000.

Wolfspeed Stock Up 1.6 %

The firm has a market cap of $778.39 million, a price-to-earnings ratio of -1.02 and a beta of 1.43. The firm’s 50 day moving average price is $7.49 and its two-hundred day moving average price is $10.71. The company has a debt-to-equity ratio of 9.82, a current ratio of 3.14 and a quick ratio of 2.54.

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.