Wolfspeed (WOLF) Stock Consolidates After 1,800% Bankruptcy Exit Rally

Shares of semiconductor firm Wolfspeed Inc (NYSE:WOLF) are trading flat Friday, holding steady after this week’s marked rally. The stock has surged 1,800% since Monday’s session open as the company announced its successful emergence from Chapter 11 bankruptcy.

What To Know: The dramatic rally was fueled by a court-approved financial restructuring that slashed Wolfspeed’s total debt by approximately 70%, from $6.5 billion to $2 billion, and reduced annual cash interest expenses by 60%.

As part of the reorganization, the company’s “old” common stock was canceled, with those shareholders receiving a heavily diluted stake of just 3-5% in the new entity, while creditors assumed majority ownership.

Despite the significant dilution, investors reacted positively to the strengthened balance sheet. CEO Robert Feurle hailed the restructuring as the “beginning of a new era,” with improved financial stability allowing the company to better capitalize on the growing demand for its silicon carbide technology.

Benzinga Edge Rankings: Reflecting its recent massive price rally, the stock currently boasts an exceptional Benzinga Edge Momentum score of 99.26.

WOLF Price Action: Wolfspeed shares were up 1.38% at $25.03 at the time of publication Friday, according to Benzinga Pro.

Read Also: How A Government Shutdown Could Turn A Hot IPO Stream Cold

How To Buy WOLF Stock

By now you're likely curious about how to participate in the market for Wolfspeed – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Image: Shutterstock