WORK Medical Plummets 28% on Intraday Carnage: What’s Fueling the Freefall?

Summary
• WORK Medical’s (WOK) stock nosedived 27.89% to $2.12, hitting its 52-week low of $2.0602
• A 1-for-100 reverse stock split effective December 29, 2025, triggered regulatory scrutiny and investor panic
• Nasdaq compliance issues and a $2.9M equity offering in Q3 2025 failed to stabilize the stock

WORK Medical’s (WOK) stock has imploded on December 31, 2025, trading at $2.12—a 27.89% collapse from its $2.80 open. The selloff, driven by regulatory red flags and a controversial reverse stock split, has left the stock teetering near its 52-week low. With a 8,723% surge in turnover and a dynamic PE ratio of 98.3, the market is grappling with a perfect storm of governance concerns and liquidity crunch.

Reverse Stock Split Triggers Regulatory and Investor Panic
WORK Medical’s 1-for-100 reverse stock split, effective December 29, 2025, ignited a liquidity crisis and regulatory backlash. The move, intended to address Nasdaq’s minimum bid price deficiency, instead exacerbated investor distrust. The stock’s post-split price surge to $60,000 (a 52-week high) was a technical anomaly, but the subsequent collapse to $2.0602 exposed fragile market confidence. Nasdaq’s delisting threat and a $2.9M equity offering in Q3 2025 failed to restore stability, as short sellers capitalized on the volatility.

Medical Devices Sector Mixed as WOK Leads Downward Spiral
The medical devices sector (MDT) saw Medtronic (MDT) dip 0.24% intraday, reflecting broader caution. However, WOK’s 27.89% plunge outpaced peers like Autonomix Medical (AMIX, -12.78%) and Profusa (PFSA, -14.91%), underscoring unique governance risks. While sector leaders like Tivic Health (TIVC, -4.46%) held firm, WOK’s regulatory turmoil and liquidity crunch isolated it as a high-risk play.

Technical Deterioration and ETF Correlation Signal Short-Term Dangers
• 200-day MA: $1.255 (well below current $2.12)
• RSI: 36.01 (oversold territory)
• MACD: -0.593 (bearish divergence)
• Bollinger Bands: $2.12 sits near the lower band ($2.0602), signaling extreme volatility

WORK Medical’s technicals paint a dire picture. The stock is trapped in a bearish channel, with the 200-day MA ($1.255) acting as a critical support level. RSI at 36 suggests oversold conditions, but without a catalyst for reversal, this could deepen the selloff. The MACD’s negative reading (-0.593) and bearish histogram confirm momentum is firmly on the short side. Traders should monitor the $2.0602 intraday low as a potential breakdown trigger. With no options chain data available, leveraged ETFs like XLV (healthcare) or XLF (financials) are irrelevant here due to WOK’s sector-specific risks.

Backtest WORK Medical Stock Performance
The backtest of WOK's performance after a -28% intraday plunge from 2022 to now shows mixed results. The 3-day win rate is 46.86%, the 10-day win rate is 46.86%, and the 30-day win rate is 42.86%. While the maximum return during the backtest was 4.91% over 33 days, the overall return was -0.92% over 3 days, 0.07% over 10 days, and 3.12% over 30 days. These figures indicate that while WOK has a decent chance of recovering from a significant drop, the overall performance after such an event is still negative.

Urgent Action Required: Watch for $2.0602 Breakdown or Nasdaq Delisting
WORK Medical’s freefall is far from over. With the stock trading near its 52-week low and Nasdaq compliance in jeopardy, the $2.0602 level is a critical inflection point. A breakdown below this would likely trigger a delisting and erase remaining value. Investors should exit long positions immediately and consider shorting against the $2.0602 support. Meanwhile, Medtronic (MDT, -0.24%) remains a sector benchmark to gauge broader market sentiment. For WOK, the clock is ticking—every hour above $2.0602 buys time, but the writing is on the wall for a distressed equity.