NEW YORK (Reuters) - Activist investor Jana Partners is urging the world's largest maker of silicon carbide Wolfspeed Inc ( WOLF ) to explore all ways to improve shareholder value, including a potential sale, according to a letter reviewed by Reuters.

Jana, which owns what it called a "significant" stake in Wolfspeed ( WOLF ), wrote in the letter that it is high time for the 37-year old company with a market value of $2.8 billion to pursue "all avenues to improve WOLF's performance" and begin a "comprehensive review of strategic alternatives."

"Such an exploration of alternatives could uncover numerous ways to highlight and realize value, including through a sale," the letter to the board of the Durham, North Carolina-headquartered company said.

A Wolfspeed ( WOLF ) representative did not immediately respond to requests for comment.

Wolfspeed's ( WOLF ) stock price has tumbled nearly 50% since January and has lost 63% of its value over the last 52 weeks as the company missed financial and operational milestones, leading investors to worry about its strategy and capital allocation at a time when growth expectations in its core electric vehicle end market have moderated.

Despite the company's differentiated manufacturing capabilities and its critical role as an American supplier supporting the energy transition, every current shareholder appears to have lost money on their investment, Jana said in the letter.

"The board's efforts to reverse its woeful performance for shareholders must also include a commitment to promptly engage in a comprehensive review of strategic alternatives," Jana managing partner Scott Ostfeld and the firm's founder, Barry Rosenstein, wrote.

Investment bank Goldman Sachs ( GS ) assigned a $126 per share M&A price target to the company, a nearly 500% premium over Wolfspeed's ( WOLF ) current share price of $22.12 on Monday, according to the letter.

It also said Wolfspeed's ( WOLF ) strategic value was highlighted by Coherent Inc's recent sale of a minority stake in its silicon carbide business to two Japanese companies, DENSO ( DNZOF ) and Mitsubishi Electric ( MIELF ).

Jana called for a "back to basics" strategy prioritizing execution and delivering on key milestones at Wolfspeed's ( WOLF ) new Mohawk Valley and Siler City plants, setting realistic targets and showcasing a path to acceptable returns on capital.

The letter also urged the company to re-evaluate the size and timing of future investments, including a planned European manufacturing facility, until Wolfspeed ( WOLF ) shows it can deliver on its existing business.

Jana owned a small stake in Wolfspeed ( WOLF ) during the third quarter of 2023 but did not list a stake in the company on its regulatory filings for the fourth quarter of 2023.

Jana has a 23-year long track record of investing in companies, including Frontier Communications which recently launched a formal strategic review following pressure from Jana and Freshpet ( FRPT ) which has generated a return of approximately 250% in the two years since Jana began engaging with the company.

Before that, Jana pushed for changes at companies such as Whole Foods Market, which sold itself to Amazon.com Inc ( AMZN ) in 2017.