WTO Stock Plummets 37% Today, But Retail Expects Shares To Go Parabolic

• UTime is set to implement the consolidation in a 1-for-5 ratio
• Shareholders approved a proposal for the board to implement either a 1-for-5 or a 1-for-6 share consolidation last month.
• The company had executed a 1-for-10 and a 1-for-100 share consolidation last year.

Shares of UTime (WTO) sank 37% on Friday, after the company announced that it would implement a 1-for-5 share consolidation effective February 17.

The stock will continue trading on the Nasdaq Capital Market under the same ticker. The move is aimed at boosting the share price to regain compliance with Nasdaq’s minimum bid price requirement.

Under the reverse split action, every five Class A ordinary shares with a par value of $0.10 will be combined into one share with a par value of $0.50.

According to an SEC filing last month, shareholders approved a proposal for the board to implement either a five-for-one or a six-for-one share consolidation, alongside measures to increase authorized share capital and amend the company’s governing documents.

Third Reverse Split In A Year

The latest share consolidation is the third such action within a year. In March 2025, the company announced a 1-for-10 reverse share split of its Class A ordinary shares, effective on March 31. It later revealed plans for a bigger 1-for-100 reverse stock split, which took effect on November 21.

Separately, UTime received a notice in August stating that it failed to meet the $2.5 million minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market.

Earlier this month, UTime’s subsidiary, Shenzhen Liandai Technology, signed an agreement with Shenzhen Yunwei Digital Technology to potentially supply 500,000 smart servers, valued at about $50 million. In December, the company’s Hong Kong unit signed a $10 million agreement with Denver-based Tumu Vertex to procure smart health devices.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits remained in the ‘extremely bullish’ territory over the past 24 hours, despite the intraday slump. Retail chatter for WTO was ‘extremely high’ on the platform.

One user expects the stock to go parabolic.

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