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

Wolfspeed, Inc. (NYSE:WOLF) gapped down before the market opened on Tuesday . The stock had previously closed at $11.10, but opened at $10.42. Wolfspeed shares last traded at $10.70, with a volume of 1,741,465 shares changing hands.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Bank of America decreased their price target on shares of Wolfspeed from $25.00 to $15.00 and set an “underperform” rating on the stock in a research report on Friday, August 23rd. TD Cowen decreased their target price on Wolfspeed from $25.00 to $15.00 and set a “hold” rating on the stock in a report on Thursday, August 22nd. Roth Mkm cut their price target on Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a report on Thursday, November 7th. The Goldman Sachs Group decreased their price objective on Wolfspeed from $22.00 to $19.00 and set a “buy” rating on the stock in a research note on Thursday, November 7th. Finally, Morgan Stanley boosted their price objective on Wolfspeed from $10.00 to $15.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 16th. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $17.21.

Wolfspeed Trading Down 3.5 %

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 50-day moving average price of $10.84 and a two-hundred day moving average price of $16.07. The stock has a market cap of $1.37 billion, a PE ratio of -1.87 and a beta of 1.38.

Insider Buying and Selling at Wolfspeed

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

Hedge Funds Weigh In On Wolfspeed

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Virtu Financial LLC boosted its stake in Wolfspeed by 160.8% during the third quarter. Virtu Financial LLC now owns 58,560 shares of the company’s stock worth $568,000 after buying an additional 36,105 shares during the period. Aequim Alternative Investments LP boosted its stake in shares of Wolfspeed by 20.2% during the 3rd quarter. Aequim Alternative Investments LP now owns 196,836 shares of the company’s stock worth $1,909,000 after purchasing an additional 33,036 shares during the period. M&T Bank Corp grew its holdings in Wolfspeed by 120.5% during the 3rd quarter. M&T Bank Corp now owns 64,222 shares of the company’s stock valued at $623,000 after purchasing an additional 35,101 shares during the last quarter. XTX Topco Ltd raised its position in Wolfspeed by 145.4% in the 3rd quarter. XTX Topco Ltd now owns 48,914 shares of the company’s stock worth $474,000 after purchasing an additional 28,983 shares during the period. Finally, Two Sigma Advisers LP lifted its stake in Wolfspeed by 813.6% in the third quarter. Two Sigma Advisers LP now owns 2,458,600 shares of the company’s stock worth $23,848,000 after purchasing an additional 2,189,500 shares during the last quarter.

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.