Wolfspeed (NYSE:WOLF) Stock Price Down 9.3% – Should You Sell?

Wolfspeed, Inc. (NYSE:WOLF) traded down 9.3% during mid-day trading on Wednesday . The stock traded as low as $6.40 and last traded at $6.41. 4,148,227 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 11,170,124 shares. The stock had previously closed at $7.07.

Analyst Upgrades and Downgrades

WOLF has been the subject of a number of analyst reports. JPMorgan Chase & Co. reduced their price objective on Wolfspeed from $20.00 to $17.00 and set a “neutral” rating for the company in a research report on Thursday, November 7th. Roth Mkm lowered their price target on shares of Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a research report on Thursday, November 7th. Piper Sandler reaffirmed an “overweight” rating and issued a $18.00 price objective (down previously from $20.00) on shares of Wolfspeed in a report on Thursday, November 7th. Mizuho reduced their target price on shares of Wolfspeed from $10.00 to $6.00 and set an “underperform” rating for the company in a research note on Tuesday, November 19th. Finally, Morgan Stanley raised their price target on shares of Wolfspeed from $10.00 to $15.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 16th. Three 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. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $17.21.

Wolfspeed Trading Down 14.4 %

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 stock has a market capitalization of $772.66 million, a price-to-earnings ratio of -1.02 and a beta of 1.43. The business has a fifty day moving average of $8.76 and a 200-day moving average of $12.63.

Insiders Place Their Bets

In other news, Director Glenda Dorchak purchased 3,592 shares of Wolfspeed stock in a transaction that occurred on Friday, November 22nd. The stock was acquired at an average price of $8.33 per share, for a total transaction of $29,921.36. Following the transaction, the director now owns 18,688 shares in the company, valued at $155,671.04. The trade was a 23.79 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman Thomas H. Werner bought 37,500 shares of Wolfspeed stock in a transaction dated Wednesday, November 20th. The stock was acquired at an average price of $6.53 per share, with a total value of $244,875.00. Following the acquisition, the chairman now directly owns 108,549 shares of the company’s stock, valued at approximately $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 acquired 78,067 shares of company stock worth $524,747. 0.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Primecap Management Co. CA grew its stake in shares of Wolfspeed by 5.0% in the 3rd quarter. Primecap Management Co. CA now owns 6,349,180 shares of the company’s stock valued at $61,587,000 after purchasing an additional 303,870 shares during the period. Two Sigma Advisers LP increased its stake in shares of Wolfspeed by 813.6% in the third quarter. Two Sigma Advisers LP now owns 2,458,600 shares of the company’s stock valued at $23,848,000 after buying an additional 2,189,500 shares in the last quarter. Samlyn Capital LLC lifted its position in Wolfspeed by 51.6% during the 2nd quarter. Samlyn Capital LLC now owns 1,009,137 shares of the company’s stock valued at $22,968,000 after purchasing an additional 343,277 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Wolfspeed by 2.5% in the third quarter. Charles Schwab Investment Management Inc. now owns 871,191 shares of the company’s stock valued at $8,451,000 after purchasing an additional 21,143 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. grew its holdings in shares of Wolfspeed by 1,158.0% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 833,201 shares of the company’s stock valued at $8,082,000 after buying an additional 766,971 shares during the period.

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.