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

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shares were down 6.4% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $5.56 and last traded at $5.62. Approximately 15,456,522 shares changed 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 for the quarter, missing analysts' consensus estimates of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 60.94% and a negative net margin of 125.96%.

Wall Street Analyst Weigh In

Several research firms recently commented on WOLF. Canaccord Genuity Group reduced their price objective on shares of Wolfspeed from $18.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday. Mizuho reduced their price target on Wolfspeed from $10.00 to $6.00 and set an "underperform" rating on the stock in a research report on Tuesday, November 19th. Susquehanna lowered their price objective on Wolfspeed from $11.00 to $7.00 and set a "neutral" rating for the company in a research report on Wednesday, January 22nd. StockNews.com raised Wolfspeed to a "sell" rating in a research report on Monday, January 6th. Finally, 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 report on Thursday. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, Wolfspeed presently has a consensus rating of "Hold" and a consensus price target of $14.86.

Insider Buying and Selling

In other news, Director Darren R. Jackson purchased 36,975 shares of the company's stock in a transaction that occurred on Wednesday, November 20th. The shares were bought at an average price of $6.76 per share, for a total transaction of $249,951.00. Following the completion of the transaction, the director now owns 85,996 shares in the company, valued at $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 SEC, which is accessible through this link. Also, Chairman Thomas H. Werner acquired 37,500 shares of the business's stock in a transaction on Wednesday, November 20th. The stock was purchased at an average cost 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 $708,824.97. This represents a 52.78 % increase in their position. The disclosure for this purchase can be found here. Insiders acquired a total of 78,067 shares of company stock valued at $524,747 over the last 90 days. Insiders own 0.84% of the company's stock.

Institutional Investors Weigh In On Wolfspeed

Institutional investors have recently modified their holdings of the business. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors acquired a new stake in Wolfspeed in the 4th quarter valued at $152,000. Truist Financial Corp purchased a new position in Wolfspeed during the fourth quarter valued at $250,000. CIBC Asset Management Inc acquired a new stake in shares of Wolfspeed in the fourth quarter valued at about $70,000. Principal Financial Group Inc. increased its stake in shares of Wolfspeed by 4.5% during the fourth quarter. Principal Financial Group Inc. now owns 619,057 shares of the company's stock worth $4,123,000 after purchasing an additional 26,458 shares in the last quarter. Finally, Allworth Financial LP raised its position in shares of Wolfspeed by 38.1% during the 4th quarter. Allworth Financial LP now owns 7,060 shares of the company's stock worth $44,000 after purchasing an additional 1,949 shares during the last quarter.

Wolfspeed Price Performance

The company has a debt-to-equity ratio of 9.82, a quick ratio of 2.54 and a current ratio of 3.14. The stock has a market capitalization of $779.92 million, a PE ratio of -0.80 and a beta of 1.43. The stock's 50 day moving average is $7.44 and its two-hundred day moving average is $10.39.

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.