The news about a reverse stock split almost always leads to a selloff in the stock of a company and that is what happened with the PolarityTE Inc (NASDAQ:PTE) stock on Monday. Yesterday, the biotech firm announced that it was going to go for a reverse stock split in the 1 for 25 ratio. T
Trading Data
On Monday, PTE stock moved down 19.41% to $0.1706 with more than 7.87 million shares, compared to its average volume of 8.10 million shares. The stock moved within a range of $0.1603 – 0.1880 after opening trade at $0.1805.
PolarityTE to Effectuate 1-for-25 Reverse Stock Split
The stock split actually went into effect yesterday at 4:15 in the evening Eastern Time as per the provisions of Delaware law. Following this move, each block of 25 outstanding and issued common shares in the company is going to be turned into a solitary common stock share.
The news was not welcomed with any enthusiasm at all by investors and the stock declined by as much as 19% as investors headed for the exits in a big way. In this situation, it is perhaps also salient to mention that Polarity TE had also been provided with a fresh CUSIP number. In addition to that, the stock is going to start trading on the NASDAQ on a split adjusted basis from today. It is going go to be interesting to see if the stock can manage to make a recovery today or not.
Technical Data
PTE stock is trading below the 20-Day and 50-Day Moving averages of $0.19 and $0.25 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.50.
