Wolfspeed (NYSE:WOLF) Trading Down 7.2% – Should You Sell?

Wolfspeed, Inc. (NYSE:WOLF)’s share price traded down 7.2% on Tuesday . The stock traded as low as $5.95 and last traded at $5.83. 2,582,885 shares were traded during mid-day trading, a decline of 87% from the average session volume of 20,402,717 shares. The stock had previously closed at $6.28.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Canaccord Genuity Group reduced their target price on Wolfspeed from $25.00 to $18.00 and set a “buy” rating on the stock in a report on Thursday, November 7th. Susquehanna reduced their price objective on Wolfspeed from $11.00 to $7.00 and set a “neutral” rating on the stock in a research note on Wednesday. Roth Mkm lowered their target price on shares of Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a research note on Thursday, November 7th. Mizuho dropped their target price on shares of Wolfspeed from $10.00 to $6.00 and set an “underperform” rating on the stock in a report on Tuesday, November 19th. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $18.00 price target (down from $20.00) on shares of Wolfspeed in a report on Thursday, November 7th. Three 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 stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $16.79.

Wolfspeed Stock Performance

The firm has a market capitalization of $782.22 million, a price-to-earnings ratio of -1.03 and a beta of 1.43. The company has a 50-day moving average price of $7.56 and a 200-day moving average price 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.

Insider Transactions at Wolfspeed

In other news, Director Darren R. Jackson acquired 36,975 shares of the company’s stock in a transaction dated Wednesday, November 20th. The shares were bought at an average price of $6.76 per share, with a total value of $249,951.00. Following the purchase, the director now owns 85,996 shares of the company’s stock, valued at approximately $581,332.96. This represents a 75.43 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Glenda Dorchak acquired 3,592 shares of the business’s stock in a transaction dated Friday, November 22nd. The stock was purchased at an average price of $8.33 per share, with a total value of $29,921.36. Following the acquisition, the director now owns 18,688 shares of the company’s stock, valued at approximately $155,671.04. This trade represents a 23.79 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders acquired 78,067 shares of company stock valued at $524,747. 0.84% of the stock is currently owned by corporate insiders.

Institutional Trading of Wolfspeed

Large investors have recently added to or reduced their stakes in the business. Eastern Bank bought a new position in shares of Wolfspeed in the third quarter valued at $27,000. R Squared Ltd acquired a new position in shares of Wolfspeed in the 4th quarter worth $28,000. KBC Group NV raised its position in shares of Wolfspeed by 76.5% during the fourth quarter. KBC Group NV now owns 6,064 shares of the company’s stock worth $40,000 after purchasing an additional 2,629 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Wolfspeed by 416.4% during the third quarter. GAMMA Investing LLC now owns 4,544 shares of the company’s stock valued at $44,000 after purchasing an additional 3,664 shares during the last quarter. Finally, Arkadios Wealth Advisors acquired a new position in shares of Wolfspeed in the 4th quarter valued at $67,000.

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.