Wolfspeed Receives Downgrade from StockNews.com

Wolfspeed (NYSE:WOLF) has experienced a significant update in its rating from analysts at StockNews.com, who have changed their recommendation to a "sell" rating in a report released to clients and investors on Tuesday.

Recent Analyst Ratings

In addition to StockNews.com's recent downgrade, other analysts have also been assessing the company. For instance, Canaccord Genuity Group updated their price target for Wolfspeed, lowering it from $25.00 to $18.00 while maintaining a "buy" recommendation. Piper Sandler reaffirmed their "overweight" status on the stock but reduced their price target from $20.00 to $18.00 as well.

Moreover, Morgan Stanley raised their price target for Wolfspeed, moving it from $10.00 to $15.00, while rating it as "equal weight." On the other hand, JPMorgan Chase cut their target price on Wolfspeed from $20.00 to $17.00, maintaining a neutral rating. Roth Mkm set a buy rating for the company, reducing their price target from $25.00 to $20.00.

Currently, the ratings landscape shows three analysts recommending a sell, ten suggesting a hold, and four advising a buy. As per MarketBeat, Wolfspeed holds a consensus rating of "Hold" with a consensus target price of $17.21.

Wolfspeed Stock Performance

On Tuesday, Wolfspeed shares dropped by 1.3%, closing at $6.66. The trading volume for the day reached 13,218,259 shares, significantly surpassing the average volume of 7,502,835 shares. The company's stock has seen a fifty-day moving average of $9.75, while the 200-day moving average is $13.42. The stock's debt-to-equity ratio stands at 9.82, with a current ratio of 3.14 and a quick ratio of 2.54. Over the past year, the company's stock has fluctuated, hitting a low of $6.10 and a high of $44.77. Presently, Wolfspeed's market capitalization is approximately $850.57 million, with a P/E ratio of -1.12 and a beta of 1.38.

Insider Transactions

In other corporate developments, Glenda Dorchak, a director at Wolfspeed, increased her holdings by acquiring 3,592 shares at an average price of $8.33 per share, amounting to a total value of $29,921.36. After this transaction, she now owns 18,688 shares, indicating a 23.79% increase in her ownership. This transaction was officially reported to the Securities and Exchange Commission.

Furthermore, Darren R. Jackson, another director, bought 36,975 shares on November 20th for an average price of $6.76 per share, resulting in a total expenditure of $249,951.00. Following this purchase, he now holds 85,996 shares, which reflects a 75.43% increase in his stake. Over the last three months, insiders have purchased a total of 78,067 shares of Wolfspeed stock, worth $524,747, with corporate insiders owning 0.84% of the company.

Institutional Investment Activity

Recent activity among institutional investors indicates a shift in holdings of Wolfspeed stock. Signaturefd LLC expanded its stake by 284.3% during the second quarter. Eastern Bank entered a new position during the third quarter, acquiring a stake valued at approximately $27,000. GAMMA Investing LLC increased its shares by 416.4% during the same period, while Asset Management One Co. Ltd. raised its holdings by 69.0%. Meanwhile, Quest Partners LLC boosted its stake by 264.9% throughout the second quarter.

Company Overview

Wolfspeed, Inc. stands out as a leading semiconductor company specializing in silicon carbide and gallium nitride (GaN) technologies, with a global presence including Europe, North America, and Asia-Pacific. The company provides materials such as silicon carbide bare wafers and GaN epitaxial layers, which are crucial for manufacturing products in RF and power applications.

Investment Considerations

As analysts reassess their ratings and investors weigh their options, those contemplating an investment in Wolfspeed may want to consider the current market sentiment and recommendations from industry experts.

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