DnB Asset Management AS, an investment management firm, recently decreased its stake in Wolfspeed, Inc. (NYSE:WOLF) by 76.5% during the second quarter of this year. According to the company’s most recent Form 13F filing with the SEC, DnB Asset Management AS now owns 15,929 shares of Wolfspeed after selling 51,985 shares during the quarter. The value of DnB Asset Management AS’s holdings in Wolfspeed at the end of this reporting period was estimated at $885,000.
Wolfspeed is a publicly traded company listed on the New York Stock Exchange (NYSE:WOLF). On August 16th this year, the company released its earnings results for the quarter. Unfortunately, it reported earnings per share (EPS) of ($0.42), falling short of the consensus estimate of ($0.20). This represented a difference of ($0.22) compared to analysts’ expectations. Additionally, Wolfspeed posted a negative net margin of 35.78% and a negative return on equity (ROE) of 9.18%. However, despite these setbacks, its revenue for the quarter was $235.80 million – higher than analysts’ projections of $224.53 million – indicating a growth of 3.2% on a year-over-year basis.
In light of this disappointing performance and its impact on investor sentiment, Duy Loan T. Le, a director at Wolfspeed, made a significant purchase by acquiring 5,000 shares of the company’s stock on August 23rd at an average cost of $47.01 per share. The total value of this transaction amounted to $235,050. With this purchase, Loan T. Le now has ownership over 10,000 shares valued at approximately $470,100.
It is worth noting that such transactions by company insiders are required to be disclosed in a legal filing with the Securities & Exchange Commission (SEC). Interested parties can access more information regarding this specific purchase through the SEC website. Currently, 0.85% of Wolfspeed’s stock is owned by company insiders.
In conclusion, DnB Asset Management AS reduced its stake in Wolfspeed, Inc. during the second quarter of this year. This move came after the company reported disappointing earnings results for the same period, falling short of analysts’ expectations. However, it’s important to bear in mind that a director at Wolfspeed recently demonstrated confidence in the company by acquiring a significant number of shares. Investors will have an eye on Wolfspeed’s subsequent performance as they await its full-year earnings report.
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Analysis of Wolfspeed’s Position in the Market: Hedge Funds and Institutional Investors Show Interest
As of the most recent data available, various hedge funds and institutional investors have made changes to their positions in Wolfspeed, a leading company in the industry. The State Board of Administration of Florida Retirement System, for instance, has witnessed a growth in its position in Wolfspeed by 4.8% during the first quarter. They now own 126,526 shares of the company’s stock with an approximate worth of $8,218,000 after acquiring an additional 5,800 shares over that period.
Other notable investment firms have also taken note of the potential growth opportunities presented by Wolfspeed. Berkshire Asset Management LLC PA, for example, purchased a new position in the company with an estimated value of around $294,000 during the same period. American Trust saw its position in Wolfspeed increase by 11.7% during the first quarter as well. They currently own 7,899 shares that are valued at approximately $513,000 after acquiring an additional 830 shares.
B. Riley Wealth Advisors Inc., a renowned wealth management firm, made notable gains through its investment in Wolfspeed too. Their position increased by 5.3%, amounting to 6,248 additional shares worth around $406,000 during the first quarter alone.
Rockefeller Capital Management L.P., known for its astute investment strategies, witnessed a remarkable boost of 113.2% in its position during Q1 as well. They now possess 4,386 shares valued at approximately $284,000 after acquiring an additional 2,329 shares over that period.
On Wednesday morning at market opening time, Wolfspeed stock opened at $40.99 per sharehighlighting its current standing within the market. With a fifty-two week low of $39.02 and a fifty-two week high of $125.48,Wolfspeedhas exhibited significant variance within this span of time.
With regards to its financial structure, the company maintains a debt-to-equity ratio of 2.58, reflecting its strategic approach to managing capital resources. Furthermore, it boasts a quick ratio of 5.22 and a current ratio of 5.74, illustrating its ability to meet short-term obligations efficiently.
Wolfspeed’s market capitalization currently stands at $5.13 billiona testament to the company’s strong position in the industry. Its P/E ratio is -15.47, indicating some variance from the norm, while its beta value has been identified as 1.57a metric that provides insight into volatility levels within the stock compared to the broader market trends.
In recent times, various research firms have provided their assessments on Wolfspeeds stock performance. TD Cowen lowered their price target on Wolfspeed from $72.00 to $50.00 and maintained an “outperform” rating for the company in their research report released on August 17th. Roth Mkm also modified their price target from $71.00 to $65.00 while maintaining a “buy rating in their report released on the same date.
Similarly, Susquehanna decreased their target price from $60.00 to $58.00 in their report released on June 27th.Wells Fargo & Company also decreased their target price from $80.00 to $60.00 but continued to endorse an “overweight” rating for Wolfspeed in their August 17th report.
Overall, it is worth noting that opinions vary among analysts when it comes to assessing Wolfspeed’s potential growth prospects as stocks cannot be predicted with absolute certainty due to unpredictable market conditions or unforeseen events. However, according to Bloomberg, Wolfspeed holds an average target price of approximately $70.89 with an average rating of “Hold.”
In conclusion, Wolfspeed has garnered significant attention from both hedge funds and institutional investors due to its strong market position. While some research firms have downgraded their price targets, it is important to recognize that the stock market is influenced by numerous factors beyond analysts’ projections. Investors should cautiously assess the risks and opportunities associated with Wolfspeed before making any investment decisions.
