TLDR
- Wolfspeed (WOLF) is converting from North Carolina to Delaware corporation by September 29, 2025
- Company is currently in Chapter 11 bankruptcy proceedings with highly speculative trading
- Stock gained 5.72% with shares trading near $2.12 despite bankruptcy concerns
- Options activity shows mixed sentiment with put/call ratio at 1.05 and high implied volatility
- Analysts maintain Hold rating with $2.00 price target on the struggling semiconductor company
Wolfspeed is making moves even while navigating bankruptcy court. The semiconductor company announced plans to convert from a North Carolina corporation to a Delaware corporation by September 29, 2025.
This corporate restructuring comes as part of the company’s broader strategic plan. The move to Delaware incorporation is a common step for companies seeking more favorable corporate laws.
The timing is particularly interesting given the company’s current financial situation. Wolfspeed is currently operating under Chapter 11 bankruptcy protection.
Trading activity has been anything but quiet despite the bankruptcy proceedings. Shares jumped 5.72% recently, climbing to around $2.12 per share.
The company has issued stern warnings about its stock. Management cautioned that trading in Wolfspeed securities is highly speculative at this point.
Equity holders face the real possibility of losses. The bankruptcy process creates uncertainty about what shareholders might ultimately recover.
Options Market Shows Mixed Signals
Options traders are sending mixed messages about Wolfspeed’s future. Trading volume hit roughly 35,000 contracts, which aligns with typical activity levels.
The put/call ratio reached 1.05, showing slightly more bearish bets than bullish ones. This ratio sits just above the normal level of 1.0 for the stock.
Implied volatility dropped but remains extremely high. The IV30 measure fell to 326.05, still ranking in the highest 10% of observations over the past year.
This volatility level suggests traders expect daily price swings of about $0.44. That’s substantial movement for a stock trading around $2.12.
Put-call skew has steepened recently. This indicates growing demand for downside protection among options traders.
Analyst Outlook Remains Cautious
Wall Street analysts are taking a wait-and-see approach. The most recent rating on Wolfspeed stock is a Hold.
The price target sits at $2.00 per share. This target is actually below the current trading price of around $2.12.
TipRanks‘ AI analyst Spark rates the stock as Neutral. The rating reflects multiple challenging factors facing the company.
Poor financial performance weighs heavily on the stock’s outlook. The company is dealing with declining revenues and negative cash flows.
High leverage adds another layer of concern for investors. The company’s debt burden becomes more problematic during bankruptcy proceedings.
Technical analysis provides some short-term positive signals. However, the long-term trend remains bearish according to most measures.
The negative price-to-earnings ratio reflects the company’s current losses. Wolfspeed also doesn’t pay a dividend, removing another potential reason for investors to hold the stock.
The company’s market capitalization has fallen to $347.4 million. Average daily trading volume has surged to nearly 59 million shares, well above historical norms.
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