In a challenging market environment, shares of Wolfspeed, Inc. (NYSE:WOLF) have touched a 52-week low, dipping to $12.47. The semiconductor company, known for its silicon carbide and gallium nitride materials used in high-performance electronics, has faced significant headwinds over the past year. Investors have watched the stock's value erode, with Cree Inc. , Wolfspeed's parent company, reporting a staggering 1-year change of -76.8%. This downturn reflects broader market trends and specific challenges within the semiconductor industry, as companies navigate supply chain issues, competitive pressures, and fluctuating demand in technology sectors.
In other recent news, Wolfspeed has experienced significant developments in its business operations and market evaluations. The company has delayed the construction of its $3 billion chip plant in Germany, shifting focus to its New York site. This move comes amidst struggles in the European Union's semiconductor industry. In the midst of these changes, Jana Partners, an activist investor, has been targeting Wolfspeed, advocating against its expansion in Europe.
Despite these challenges, analysts have been adjusting their outlooks for Wolfspeed. Canaccord Genuity maintained a Buy rating on the company but lowered its price target to $45 from $47, citing concerns over electric vehicle demand and industry liquidity issues. On the other hand, Mizuho maintained a Neutral rating on Wolfspeed but raised the price target to $28, reflecting revised estimates for the company's future revenues and earnings per share. Other firms such as Deutsche Bank, TD Cowen, and JPMorgan have also revised their price targets and ratings for Wolfspeed.
These developments come in the context of a surge in activist investor activity. The first half of 2024 saw a record number of campaigns launched against global companies, including Wolfspeed, surpassing the previous high from the first half of 2018. Despite the increase in campaigns, the success rate for securing board seats has declined, indicating a challenging landscape for activist investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.