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

Wolfspeed, Inc. (NYSE:WOLF) shares dropped 7.2% on Tuesday . The company traded as low as $5.95 and last traded at $5.83. Approximately 2,582,885 shares traded hands during trading, a decline of 87% from the average daily volume of 20,402,717 shares. The stock had previously closed at $6.28.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. The Goldman Sachs Group decreased their price objective on Wolfspeed from $19.00 to $17.00 and set a “buy” rating for the company in a report on Thursday, January 16th. Piper Sandler reissued an “overweight” rating and issued a $18.00 price target (down previously from $20.00) on shares of Wolfspeed in a research note on Thursday, November 7th. Roth Mkm lowered their price target on Wolfspeed from $25.00 to $20.00 and set a “buy” rating on the stock in a report on Thursday, November 7th. Morgan Stanley upped their price objective on shares of Wolfspeed from $10.00 to $15.00 and gave the stock an “equal weight” rating in a report on Wednesday, October 16th. Finally, Mizuho lowered their target price on shares of Wolfspeed from $10.00 to $6.00 and set an “underperform” rating on the stock in a research note on Tuesday, November 19th. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $17.07.

Wolfspeed Price Performance

The stock’s fifty day moving average price is $7.64 and its 200-day moving average price is $11.54. 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 firm has a market cap of $811.60 million, a price-to-earnings ratio of -1.07 and a beta of 1.43.

Insider Activity

In related news, Director Glenda Dorchak purchased 3,592 shares of the firm’s stock in a transaction that occurred on Friday, November 22nd. The stock was acquired at an average cost of $8.33 per share, for a total transaction of $29,921.36. Following the completion of the acquisition, the director now owns 18,688 shares in the company, valued at $155,671.04. This trade represents a 23.79 % increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Thomas H. Werner bought 37,500 shares of the firm’s stock in a transaction on Wednesday, November 20th. The shares were bought at an average cost of $6.53 per share, with a total value of $244,875.00. Following the purchase, the chairman now directly owns 108,549 shares in the company, valued at approximately $708,824.97. This trade represents a 52.78 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired 78,067 shares of company stock worth $524,747 over the last quarter. Corporate insiders own 0.84% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of WOLF. Dimensional Fund Advisors LP grew its stake in shares of Wolfspeed by 30.5% in the 2nd quarter. Dimensional Fund Advisors LP now owns 637,581 shares of the company’s stock valued at $14,513,000 after buying an additional 149,093 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its position in Wolfspeed by 32.7% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 15,665 shares of the company’s stock worth $353,000 after acquiring an additional 3,860 shares in the last quarter. XTX Topco Ltd acquired a new position in shares of Wolfspeed during the 2nd quarter worth $454,000. Inspire Investing LLC lifted its stake in shares of Wolfspeed by 26.5% in the 2nd quarter. Inspire Investing LLC now owns 15,419 shares of the company’s stock valued at $351,000 after purchasing an additional 3,230 shares during the last quarter. Finally, Intech Investment Management LLC acquired a new stake in shares of Wolfspeed in the 2nd quarter valued at $1,114,000.

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.