Why Wolfspeed Stock Is Skyrocketing Today
(NYSE: WOLF) stock is surging in Monday's trading. The company's share price was up 10% as of 2:30 p.m. ET and had been up as much as 18.5% earlier in the daily session.
Wolfspeed stock is gaining today following a filing showing that it had filed for a mixed securities shelf. The company's share price is likely also getting a boost from recent filings with the Securities and Exchange Commission (SEC) showing that insiders have continued to acquire stock. Despite today's pop, Wolfpseed stock is still down roughly 76% year to date.
A filing submitted to the SEC today showed that Wolfspeed had moved forward with an automatic shelf registration statement of securities. The move will give the company the flexibility to issue new stock at any point over a three-year period without the need to file additional registrations. With the company trying to orchestrate a turnaround and refocus its business on profitable silicon-carbide products, the push to raise new funds is a favorable indicator even though issuing new stock will have dilutive impact for existing shareholders.
Source Fool.com
