Last week the U.S. Well Services (NASDAQ:USWS) stock had tanked dramatically after the company had made an announcement with regards to a business update. In addition to that, the company had also confirmed that it was going to go for a reverse split.
However, this week, the stock started strongly as it seemed to be on the path to recovery and on Monday, it ended the day with gains of as much as 17%. Despite the recover made by the stock it might be a good move to take a look at why the stock had declined sharply last week.
The company announced on September 30 that it had been successful in completing the sale of around 30% of its pressure pumping portfolio since it had announced its intention to make an exit from the diesel frac service space.
In addition to that, U.S. Well Services also announced that it had five all electric fleets at the time but by the end of next year, it believes that the number of fleets will grow to nine. Last but not the least, the reverse split of its stock went into effect on the same day as well. Shareholders were going to get one share post split for each 3.5 shares that they held.
