Wolfspeed Receives Downward Upgrade from StockNews.com

Wolfspeed (NYSE:WOLF) was recently downgraded by analysts at StockNews.com to a "sell" rating, as reported in a recent research note issued on Tuesday. This marks a significant shift in the sentiment toward the company from previous evaluations.

Analysts' Ratings and Price Targets

In addition to StockNews.com's recent actions, other analysts have also commented on Wolfspeed's stock. Canaccord Genuity Group decreased their price target for Wolfspeed's shares from $25.00 to $18.00 while maintaining a "buy" rating. This adjustment was announced in a report dated November 7th. Similarly, Piper Sandler reaffirmed their "overweight" rating on the stock but reduced their price target from $20.00 to $18.00 in a report released the same day.

Further updates included Morgan Stanley, which revised their price target from $10.00 to $15.00 and assigned an "equal weight" rating on October 16th. Meanwhile, JPMorgan Chase lowered their price target from $20.00 to $17.00 and designated the stock with a "neutral" rating on November 7th. Roth MKM also reduced their price target from $25.00 to $20.00 while maintaining a "buy" rating. A total of three analysts have given Wolfspeed a sell rating, ten have issued a hold, and four have assigned a buy rating, leading to a consensus rating of "Hold" with an average target price of $17.21, according to MarketBeat data.

Wolfspeed's Stock Performance

On Tuesday, Wolfspeed's stock experienced a decline of 1.3%, trading down by $0.09 and reaching a price of $6.66. There were approximately 13,218,259 shares exchanged during trading, surpassing the average volume of 7,502,835 shares. The fifty-day moving average for the stock stands at $9.75, while the two-hundred-day moving average is $13.42. The company holds a significant debt-to-equity ratio of 9.82, with a current ratio of 3.14 and a quick ratio of 2.54. Over the past year, the stock has recorded a low of $6.10 and a high of $44.77. Wolfspeed's market capitalization is noted at $850.57 million, with a P/E ratio of -1.12 and a beta of 1.38.

Recent Insider Activity

In more internal news, Glenda Dorchak, a director at Wolfspeed, purchased 3,592 shares of the company on November 22nd, at an average cost of $8.33 per share, totaling approximately $29,921.36. Post-purchase, Dorchak now holds 18,688 shares, which are valued at about $155,671.04, representing a 23.79% increase in her holdings. Another director, Darren R. Jackson, acquired 36,975 shares at a price of $6.76 per share, leading to a transaction value of around $249,951. Following this acquisition, Jackson owns 85,996 shares worth approximately $581,332.96, showcasing a 75.43% increase in his position. In the last quarter, company insiders purchased a total of 78,067 shares valued at $524,747, with corporate insiders owning 0.84% of the stock.

Institutional Shareholder Movements

Institutional investors have also been active in adjusting their stakes in Wolfspeed. Signaturefd LLC expanded its holdings of Wolfspeed shares by 284.3% in the second quarter, resulting in a total of 2,087 shares worth $48,000. Eastern Bank entered the market as well, acquiring a new stake during the third quarter estimated at $27,000.

Additionally, GAMMA Investing LLC increased its holdings by 416.4% in the same quarter, now holding 4,544 shares valued at $44,000. Asset Management One Co. Ltd. also grew its investment in Wolfspeed by 69.0%, holding 7,067 shares valued at $69,000 after adding 2,885 shares.

Quest Partners LLC's stake rose by an astounding 264.9% in the second quarter, reaching 9,127 shares worth $208,000. The shifts in institutional investments highlight varying levels of confidence in Wolfspeed from larger market players.

Overview of Wolfspeed

Wolfspeed, Inc. is a leading semiconductor company specializing in silicon carbide and gallium nitride (GaN) technologies. Its operations span across Europe, Hong Kong, China, Asia-Pacific, and the United States. The company produces materials like silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide substrates, catering to applications in RF, power, and more.

Wolfspeed, Stock, Analysts