TLDR
- Wolfspeed (WOLF) converting to Delaware corporation by September 29, 2025 during Chapter 11 proceedings
- Options activity shows mixed sentiment with high implied volatility at 326.05
- Analysts maintain Hold rating with $2.00 price target below current trading levels
- Company warns equity holders face potential losses during bankruptcy process
Wolfspeed is pushing forward with corporate restructuring while navigating bankruptcy court. The semiconductor company announced plans to convert from North Carolina to Delaware incorporation by September 29, 2025.
The corporate move represents part of Wolfspeed’s broader strategic restructuring plan. Delaware incorporation offers more favorable corporate governance laws for many companies.
This timing proves interesting given the company’s Chapter 11 bankruptcy status. Wolfspeed continues operating while reorganizing its financial structure through court proceedings.
Stock Shows Unexpected Strength
Recent trading activity defied bankruptcy concerns. Wolfspeed shares fell over 27% on Friday, dropping to a low of $1.22.
The company issued warnings about its stock’s speculative nature. Management cautioned investors that trading carries high risks during bankruptcy proceedings.
Equity holders face uncertain outcomes. The bankruptcy process creates questions about potential shareholder recovery rates.
Options traders sent mixed signals about Wolfspeed’s direction. Trading volume hit 35,000 contracts, matching typical activity levels for the stock.
The put/call ratio reached 1.05, showing slightly more bearish positions. This ratio sits just above the normal 1.0 level for Wolfspeed options.
Implied volatility remains extremely high despite recent declines. The IV30 measure dropped to 326.05 but stays in the top 10% of yearly observations.
This volatility suggests daily price movements of roughly $0.44. That represents substantial swings for a stock trading around $2.12.
Analyst Outlook Stays Cautious
Wall Street maintains a conservative stance on Wolfspeed. The most recent analyst rating holds at Hold with a $2.00 price target.
TipRanks‘ AI analyst Spark rates the stock as Neutral. Multiple challenging factors influence this assessment.
Declining revenues and negative cash flows hurt the company’s prospects. High leverage adds pressure during bankruptcy restructuring.
Technical analysis shows some short-term positive signals. However, long-term trends remain bearish across most indicators.
The company’s market cap sits at $347.4 million. Average daily volume surged to nearly 59 million shares, well above historical norms.
Put-call skew steepened recently, indicating increased downside protection demand. This reflects growing caution among options traders about Wolfspeed’s future.
The company operates without dividend payments, removing income appeal for investors. Negative earnings ratios reflect ongoing operational losses.
Wolfspeed’s September 29 Delaware incorporation deadline approaches as restructuring continues through bankruptcy court proceedings.
