Wolfspeed (NYSE:WOLF) Shares Gap Down Following Analyst Downgrade

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) gapped down before the market opened on Thursday after Susquehanna lowered their price target on the stock from $11.00 to $7.00. The stock had previously closed at $6.18, but opened at $5.90. Susquehanna currently has a neutral rating on the stock. Wolfspeed shares last traded at $5.86, with a volume of 1,603,217 shares changing hands.

A number of other research analysts also recently commented on the company. The Goldman Sachs Group lowered their target price on Wolfspeed from $19.00 to $17.00 and set a "buy" rating for the company in a research report on Thursday, January 16th. Mizuho decreased their price target on Wolfspeed from $10.00 to $6.00 and set an "underperform" rating on the stock in a report on Tuesday, November 19th. JPMorgan Chase & Co. decreased their price target on Wolfspeed from $20.00 to $17.00 and set a "neutral" rating on the stock in a report on Thursday, November 7th. Piper Sandler restated an "overweight" rating and set a $18.00 price target (down previously from $20.00) on shares of Wolfspeed in a report on Thursday, November 7th. Finally, StockNews.com upgraded Wolfspeed to a "sell" rating in a report on Monday, January 6th. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, Wolfspeed has an average rating of "Hold" and a consensus price target of $16.79.

Insider Activity

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

Institutional Investors Weigh In On Wolfspeed

Institutional investors have recently added to or reduced their stakes in the business. Eastern Bank acquired a new stake in Wolfspeed in the third quarter worth about $27,000. R Squared Ltd acquired a new stake in shares of Wolfspeed during the fourth quarter worth about $28,000. KBC Group NV lifted its holdings 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 worth $44,000 after purchasing an additional 3,664 shares during the period. Finally, Valley National Advisers Inc. lifted its holdings in shares of Wolfspeed by 350.7% during the fourth quarter. Valley National Advisers Inc. now owns 9,461 shares of the company's stock worth $63,000 after purchasing an additional 7,362 shares during the period.

Wolfspeed Price 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 stock has a market cap of $844.80 million, a price-to-earnings ratio of -1.11 and a beta of 1.43. The stock has a fifty day moving average of $7.53 and a 200 day moving average of $11.34.

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.