According to the latest news, Wolfspeed, a leading U.S. chip manufacturer, plans to file for bankruptcy in the coming weeks. Affected by this, the after – hours stock price of Wolfspeed in the U.S. plummeted sharply on Beijing time May 21, at one point plummeting by more than 66%.
Wall Street analysts believe that the missteps of Wolfspeed’s management in capital allocation, execution, and strategy have led to huge problems in the company’s operations. Wolfspeed’s future is basically either bankruptcy or acquisition.
It is worth mentioning that well – known investment institutions sold off their holdings in advance on the eve of the collapse. According to a regulatory filing, activist investor Jana Partners had exited all of its positions in Wolfspeed during the first quarter of this year.
Big Dive
According to a report by The Wall Street Journal citing informed sources on U.S. Eastern Time May 20, Wolfspeed is preparing to file for bankruptcy in the next few weeks due to difficulties in resolving its huge debt problems.
After this news broke, the after – hours stock price of Wolfspeed plummeted sharply, at one point falling by more than 66%.
Suspected insider traders bought huge amounts of put options
About 20 minutes before market close, a trader or traders come in and buy the $WOLF 3P and 2P 7/18 and 6/20 contracts in size for a combined total of almost $10 million in premium. Shortly afterwards, Wolfspeed falls more than 50% after reports come out that they are preparing to file for bankruptcy.
