Erayak Power (RAYA) Plummets 52% Intraday: Reverse Split Ignites Turbulence as Sector Watch Begins

Summary
• Erayak Power (RAYA) executes 220-for-1 reverse stock split effective 9/30/2025
• Intraday price plummets 52.18% to $4.1134 amid post-split volatility
• 52-week range of $3.96–$737.00 highlights extreme price compression

The Nasdaq-listed power solutions provider faces a seismic intraday collapse as its aggressive reverse stock split triggers immediate market skepticism. With shares trading at 49% below the 52-week low, the move underscores regulatory compliance efforts amid deteriorating fundamentals. The stock’s 5.54–3.96 range today reflects a liquidity crisis, while sector peers like Emerson Electric (EMR) show divergent momentum.

Reverse Split Triggers Investor Flight as RAYA Collapses
Erayak Power’s 220-for-1 reverse stock split, mandated to meet Nasdaq’s minimum bid price requirements, has triggered a catastrophic sell-off. The corporate action reduces 187.9 million Class A shares to 854,059 post-split, signaling severe financial distress rather than strategic growth. With a new par value of $0.022 per share and a 44% dilution from recent $3 million equity raises, the move reflects a desperate bid to avoid delisting. The 52-week high of $737.00—achieved during a prior liquidity crisis—now contrasts starkly with today’s 52.18% intraday drop, as investors flee a company with a -3.37 dynamic P/E ratio and no clear path to profitability.

Electrical Equipment Sector Mixed as Emerson Electric Climbs
The Electrical Equipment sector (XEL) shows mixed momentum, with sector leader Emerson Electric (EMR) rising 0.59% despite RAYA’s collapse. While RAYA’s reverse split reflects individual distress, broader sector dynamics remain stable. XEL’s 0.3% intraday gain suggests market focus remains on operational resilience rather than speculative plays. RAYA’s 52-week low of $3.96 aligns with its current price, indicating the stock has become a pariah within its industry.

Technical Deterioration and Options Void: Navigating the RAYA Abyss
• MACD: -0.0522 (bearish divergence), Signal Line: -0.0752, Histogram: +0.0229 (short-term bearish)
• RSI: 52.03 (oversold but trapped in 50–55 range)
• Bollinger Bands: $0.0688 (upper), $0.0487 (middle), $0.0286 (lower)—price at 83% of lower band
• 200-day MA: $1.1717 (far above current price)
• Support/Resistance: 30D support at $0.0469–$0.0477, 200D resistance at $0.0965

RAYA’s technical profile is a textbook bear trap, with all major indicators confirming structural collapse. The stock’s 52-week range of $3.96–$737.00 highlights a 94.5% price compression since its peak. With no options liquidity and a -3.37 P/E ratio, the stock is a high-risk short-term play. Aggressive bears should monitor the $3.96 intraday low as a potential breakdown level, while longs face a 200-day MA gap of $1.1717 as an insurmountable hurdle. The absence of leveraged ETFs compounds the risk, leaving traders with no hedging tools.

Backtest Erayak Power Stock Performance
The performance of RAYA after a significant intraday plunge of -52% in 2022 can be summarized as follows:1. Current Price Status: - As of the latest data, RAYA's price has not been fully recovered from the dramatic drop of 2022.2. Intraday Plunge Impact: - The -52% intraday plunge in 2022 led to a substantial deviation from RAYA's previous price trajectory.3. Subsequent Recovery: - Since the bottom in 2022, RAYA has shown a gradual recovery, but it has not regained the lost ground entirely.4. Recent Performance: - The stock's performance in the recent months has been volatile, with fluctuations that have not led to a definitive upward trend.5. Market Sentiment and Factors: - Various factors, including market conditions, company performance, and global events, have influenced RAYA's stock price. - Market sentiment towards Chinese companies and micro-cap stocks has also played a role in RAYA's performance.

RAYA's Abyss Deepens: Immediate Action Required as Sector Diverges
Erayak Power’s reverse split has accelerated its descent into insolvency, with technical indicators and fundamentals aligning for a prolonged bearish phase. The stock’s 52.18% intraday drop to $4.1134—just 0.15% above its 52-week low—confirms a liquidity vacuum. Sector leader Emerson Electric (EMR) rising 0.59% underscores the divergence between RAYA’s collapse and broader industry stability. Immediate action for traders: short RAYA below $3.96 or exit long positions entirely. Watch for a breakdown below the 200-day MA of $1.1717, which would cement the stock’s status as a speculative relic.