Wells Fargo downgraded WOLF to "equal weight" from "overweight"
Wolfspeed Inc (NYSE:WOLF) stock is down 4.9% to trade at $26.38 at last check, after a downgrade from Wells Fargo to "equal weight" from "overweight," and a price-target cut to $30 from $55. The analyst in coverage noted weaker-than-expected demand for silicon carbide devices, higher supplies, and the company's lack of profitability.
The security has struggled with a ceiling at the $30 level since February, while pressure from its 60-day moving average has been in place since January. While the shares managed to distance themselves from a Feb. 23, seven-year low $23.77, they still sports a 55.3% year-over-year deficit.
Short interest is up 1.8% over the last two reporting periods, and the 19.64 million shares sold short already accounts for 15.8% of Wolfspeed stock's available float. It would take shorts more than four days to buy back their bearish bets, at the equity's average pace of trading.
It's also worth noting the security's Schaeffer's Volatility Scorecard (SVS) ranks at an elevated 9 out of 100. This means WOLF tends to exceed traders' volatility expectations.