Bank of America Cuts Wolfspeed (NYSE:WOLF) Price Target to $6.00

Wolfspeed (NYSE:WOLF) had its target price reduced by investment analysts at Bank of America from $9.50 to $6.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has an “underperform” rating on the stock. Bank of America‘s target price indicates a potential upside of 4.66% from the company’s previous close.

Several other analysts also recently issued reports on WOLF. Morgan Stanley upped their price objective on Wolfspeed from $10.00 to $15.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 16th. Mizuho reduced their price objective on Wolfspeed from $10.00 to $6.00 and set an “underperform” rating on the stock in a research report on Tuesday, November 19th. JPMorgan Chase & Co. reduced their price objective on Wolfspeed from $20.00 to $17.00 and set a “neutral” rating on the stock in a research report on Thursday, November 7th. StockNews.com upgraded Wolfspeed to a “sell” rating in a research report on Monday, January 6th. Finally, The Goldman Sachs Group dropped their target price on Wolfspeed from $17.00 to $15.00 and set a “buy” rating for the company in a research note on Thursday. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $15.43.

Wolfspeed Stock Performance

WOLF traded down $0.27 during trading on Thursday, hitting $5.73. 16,555,325 shares of the stock were exchanged, compared to its average volume of 18,734,246. The firm has a market capitalization of $732.16 million, a P/E ratio of -0.95 and a beta of 1.43. Wolfspeed has a 1-year low of $4.66 and a 1-year high of $34.63. The stock has a fifty day moving average price of $7.50 and a two-hundred day moving average price of $10.74. The company has a quick ratio of 2.54, a current ratio of 3.14 and a debt-to-equity ratio of 9.82.

Wolfspeed (NYSE:WOLF) last released its earnings results on Wednesday, January 29th. The company reported ($1.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.90) by ($0.20). Wolfspeed had a negative net margin of 93.31% and a negative return on equity of 49.86%. As a group, sell-side analysts predict that Wolfspeed will post -4.2 earnings per share for the current year.

Insider Buying and Selling

In related news, Chairman Thomas H. Werner bought 37,500 shares of the stock in a transaction on Wednesday, November 20th. The shares were purchased at an average price of $6.53 per share, with a total value of $244,875.00. Following the purchase, the chairman now owns 108,549 shares in the company, valued at approximately $708,824.97. This represents a 52.78 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Glenda Dorchak acquired 3,592 shares of the stock in a transaction dated 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 purchase, the director now directly owns 18,688 shares in the company, valued at approximately $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 purchased a total of 78,067 shares of company stock worth $524,747 in the last three months. 0.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Eastern Bank acquired a new stake in shares of Wolfspeed during the third quarter worth approximately $27,000. R Squared Ltd acquired a new stake in shares of Wolfspeed during the fourth quarter worth approximately $28,000. KBC Group NV boosted 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 boosted 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, Newbridge Financial Services Group Inc. acquired a new stake in shares of Wolfspeed during the fourth quarter worth approximately $52,000.

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.