WOLF stock plunges to 52-week low at $1.14 amid market challenges

Published 21/05/2025, 14:34
WOLF stock plunges to 52-week low at $1.14 amid market challenges

In a turbulent market environment, shares of Wolfspeed, Inc. (WOLF) have tumbled to $1.14, marking a dramatic decline from its 52-week high of $30.86. According to InvestingPro data, the stock’s current market capitalization stands at $490 million, with analysts setting price targets between $2 and $7. The semiconductor company, known for its silicon carbide and gallium nitride materials used in various high-growth industries, has faced significant headwinds over the past year. This latest price level reflects a stark contrast to its performance over the last twelve months, with the stock plummeting by 88.3%. While the company maintains strong liquidity with a current ratio of 4.64, InvestingPro analysis reveals concerning trends, including rapid cash burn and significant debt burden. InvestingPro subscribers have access to 17 additional key insights and a comprehensive Pro Research Report, offering crucial analysis for investors navigating this volatile tech stock.

In other recent news, Wolfspeed Inc. (NYSE:WOLF) reported its third-quarter earnings for fiscal year 2025, revealing an adjusted earnings per share (EPS) of -$0.72, which was better than analysts’ expectations of -$0.82. The company generated revenue of $185 million, slightly missing the forecast of $185.66 million. Despite this EPS beat, the company’s stock rating was downgraded by JPMorgan from Neutral to Underweight, due to ongoing demand challenges and uncertainties in the silicon carbide sector. Citi analysts also reduced Wolfspeed’s stock price target to $3 while maintaining a Sell rating, citing a challenging macroeconomic environment and financial hurdles. Additionally, Wolfspeed announced a 25% workforce reduction and the closure of its 150mm facilities to focus on 200mm silicon carbide manufacturing. The company is actively restructuring and exploring both in-court and out-of-court options as part of its negotiations with lenders to improve its capital structure. In a strategic move, Wolfspeed added Paul Walsh and Mark Jensen to its Board of Directors, aiming to strengthen its financial expertise amid these transitions.

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