Wolfspeed (NYSE:WOLF) Shares Gap Down – Should You Sell?

Shares of Wolfspeed, Inc. (NYSE:WOLF) gapped down before the market opened on Monday . The stock had previously closed at $5.95, but opened at $5.64. Wolfspeed shares last traded at $5.53, with a volume of 2,687,732 shares.

Analysts Set New Price Targets

Several analysts recently commented on the company. Susquehanna dropped their price target on Wolfspeed from $11.00 to $7.00 and set a “neutral” rating for the company in a research report on Wednesday, January 22nd. The Goldman Sachs Group cut their target price on shares of Wolfspeed from $17.00 to $15.00 and set a “buy” rating on the stock in a research note on Thursday, January 30th. Bank of America lowered their price objective on Wolfspeed from $9.50 to $6.00 and set an “underperform” rating for the company in a research report on Thursday, January 30th. Canaccord Genuity Group cut their price target on Wolfspeed from $18.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, January 30th. Finally, Mizuho dropped their price objective on Wolfspeed from $10.00 to $6.00 and set an “underperform” rating on the stock in a report on Tuesday, November 19th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $14.86.

Wolfspeed Stock Performance

The firm has a fifty day moving average price of $6.06 and a 200 day moving average price of $8.61. The firm has a market capitalization of $687.35 million, a PE ratio of -0.70 and a beta of 1.50. The company has a debt-to-equity ratio of 17.26, a current ratio of 3.15 and a quick ratio of 2.47.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings results on Wednesday, January 29th. The company reported ($1.10) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 70.84% and a negative net margin of 125.96%. Research analysts anticipate that Wolfspeed, Inc. will post -4 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently added to or reduced their stakes in WOLF. Two Sigma Advisers LP grew its stake in 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 last quarter. Frontier Capital Management Co. LLC increased its stake in shares of Wolfspeed by 94.2% in the 4th quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company’s stock valued at $13,658,000 after buying an additional 995,020 shares during the period. Connor Clark & Lunn Investment Management Ltd. increased its stake 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. Erste Asset Management GmbH acquired a new position in shares of Wolfspeed during the third quarter valued at $4,542,000. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of Wolfspeed by 38.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,207,157 shares of the company’s stock valued at $8,040,000 after acquiring an additional 335,966 shares during the period.

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.