WORK Medical's 36% Plunge: Reverse Split Triggers Liquidity Crisis as Shares Hit 52-Week Low

Summary
• WORK Medical (WOK) slumps 35.99% intraday to $0.0313, its lowest since Dec 24, 2025
• 1-for-100 reverse stock split announced Dec 24 triggers liquidity vacuum and panic selling
• Turnover surges 9,214% to 64.38M shares amid Nasdaq compliance maneuver

WORK Medical’s catastrophic 35.99% intraday collapse has ignited a liquidity firestorm, driven by its 1-for-100 reverse stock split. The Nasdaq-listed medical device supplier now trades near its 52-week low of $0.0276, with turnover exploding to 64.38 million shares. This structural corporate action—mandated by Nasdaq’s minimum bid price rule—has created a perfect storm of technical deterioration and investor panic.

Reverse Stock Split Sparks Liquidity Collapse
WORK Medical’s 1-for-100 reverse stock split, effective Dec 29, has triggered a liquidity vacuum by consolidating 100 shares into one. This artificial inflation of per-share price, combined with rounding up of fractional shares, has drastically reduced tradable volume. The corporate action—mandated by Nasdaq Rule 5550(a)(2)—has exacerbated panic selling as investors scramble to exit pre-split positions. With the stock now trading at 66% of its 52-week low, the structural shift has created a death spiral of declining liquidity and accelerating price erosion.

Medical Device Sector Steadies as WOK Plummets
Navigating the WOK Freefall: ETFs and Technical Deterioration
• MACD: -1.105 (bearish divergence), Signal Line: -0.743, Histogram: -0.362 (deepening bearish momentum)
• RSI: 22.78 (oversold territory), Bollinger Bands: $0.0276 (lower band) vs. $8.42 (upper band) – extreme volatility
• 200D MA: $1.236 (price at $0.0319, 97% below), 30D MA: $3.229 (price at $0.0319, 99% below)

WORK Medical’s technicals paint a dire picture: RSI at 22.78 signals oversold conditions, but bearish momentum from MACD (-1.105) and 200D MA divergence ($1.236 vs. $0.0319) suggest further deterioration. Bollinger Bands show price at the lower bound ($0.0276), indicating potential for a rebound or continuation of the selloff. With no options liquidity, traders must rely on ETFs like XLF (financials) for indirect exposure, though WOK’s sector-specific collapse limits ETF utility. Short-term traders should monitor the 52-week low ($0.0276) as a critical support level; a break below could trigger delisting. Meanwhile, Medtronic (MDT)’s -0.27% move highlights sector resilience. Investors must decide: is this a short-term volatility play or a permanent impairment? The answer lies in whether WOK can regain $0.0489 (previous close) by Dec 29’s post-split open.

Backtest WORK Medical Stock Performance
The backtest of WOK's performance after a -36% intraday plunge from 2022 to now shows mixed results. The 3-Day win rate is 47.95%, the 10-Day win rate is 47.95%, and the 30-Day win rate is 43.27%. While the maximum return during the backtest was 3.95% over 33 days, the overall return was -0.89% over 3 days, 0.13% over 10 days, and 2.14% over 30 days. These figures indicate that while WOK has a decent chance of recovery within short to medium terms, it has struggled to regain its lost ground in the long run.

WOK at Crossroads: Liquidity Death Spiral or Nasdaq Rebirth?
WORK Medical’s reverse stock split represents a desperate bid for Nasdaq compliance, but the 35.99% intraday plunge exposes structural fragility. With price at 0.66% of its 52-week high ($600) and 99% below its 200D MA, the stock faces existential risks. Traders should watch for a breakdown below $0.0276, which could trigger delisting. Meanwhile, Medtronic (MDT)’s -0.27% move highlights sector resilience. Investors must decide: is this a short-term volatility play or a permanent impairment? The answer lies in whether WOK can regain $0.0489 (previous close) by Dec 29’s post-split open. Watch for $0.0276 breakdown or regulatory reaction.