Wolfspeed Receives Downgrade to 'Sell' Rating from StockNews.com

Wolfspeed (NYSE:WOLF) has been officially downgraded to a "sell" rating by analysts at StockNews.com. This decision was announced in a research report released to clients and investors on Tuesday, signaling a change in the perception of the company's stock value.

Recent Analyst Opinions

In addition to StockNews.com's report, several other financial analysts have also provided their assessments of Wolfspeed's stock. Notably, Canaccord Genuity Group has revised its price target for Wolfspeed shares from $25.00 down to $18.00 while maintaining a "buy" rating. This update was made on November 7th. Similarly, Piper Sandler reaffirmed an "overweight" rating but adjusted its price target down from $20.00 to $18.00. On the other hand, Morgan Stanley raised its price target from $10.00 to $15.00, issuing an "equal weight" rating in its report dated October 16th.

Furthermore, JPMorgan Chase & Co. reduced their target price for Wolfspeed from $20.00 to $17.00, classifying it as a "neutral" rating in a report issued on November 7th. Roth MKM also cut their price target from $25.00 to $20.00 while continuing to endorse a "buy" rating. The overall sentiment from analysts shows that three have assigned a "sell" rating, ten have given it a hold rating, and four see it as a buy. Presently, MarketBeat data indicates a consensus rating of "Hold" for the company, with an average target price of $17.21.

Current Stock Performance

On the day when the downgrade news broke, Wolfspeed's stock dipped by 1.3%, concluding trading at $6.66. During the session, a total of 13,218,259 shares changed hands, which is significantly higher than the typical trading volume of 7,502,835 shares. The fifty-day moving average price now stands at $9.75, while the 200-day moving average price is recorded at $13.42. Over the last twelve months, the stock has reached a low of $6.10 and a high of $44.77, with a current market capitalization of $850.57 million. The company holds a debt-to-equity ratio of 9.82, with a current ratio of 3.14 and a quick ratio of 2.54, illustrating the firm's financial leverage.

Insider Activities

Recent insider transactions reflect a notable increase in stock interest among company insiders. Director Glenda Dorchak recently acquired 3,592 shares at an average price of $8.33, totaling approximately $29,921.36. Following this transaction, she owns 18,688 shares valued at around $155,671.04, which indicates a 23.79% increase in her holding. Additionally, another director, Darren R. Jackson, purchased 36,975 shares at an average price of $6.76 for a total of $249,951.00, raising his ownership to 85,996 shares, valued at nearly $581,332.96, reflecting a 75.43% increase in his holdings. In total, insiders have bought 78,067 shares in recent months, valued at around $524,747, which translates to approximately 0.84% ownership of the total stock.

Institutional Investment Trends

Institutional investors have been actively adjusting their positions in Wolfspeed as well. For instance, Signaturefd LLC increased its holdings by 284.3% during the second quarter, acquiring 2,087 shares valued at $48,000. Additionally, Eastern Bank has taken a new position in Wolfspeed with an investment of roughly $27,000. GAMMA Investing LLC improved its stake by an impressive 416.4%, owning 4,544 shares valued at $44,000 after adding 3,664 shares. Similarly, Asset Management One Co. Ltd. raised its position by 69%, securing 7,067 shares valued at $69,000. Quest Partners LLC also significantly increased its stake by 264.9% in the second quarter, accumulating 9,127 shares worth $208,000.

Overview of Wolfspeed

Wolfspeed, Inc. is a leading semiconductor company known for its innovations in silicon carbide and gallium nitride (GaN) technologies. The firm operates globally, serving various regions including Europe, Asia, and the United States, providing important silicon carbide and GaN materials for different applications.

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