MannKind Corporation (NASDAQ:MNKD) shares were hit hard Friday afternoon as the company announced a reverse stock split.
The Valencia, California-based pharmaceutical company approved a reverse split at a special meeting that will reduce authorized shares from 700 million to 140 million. The 1-for-5 reverse stock split came as shareholders approved of a split between 1-for-3 and 1-for-10.
MannKind’s board of directors immediately oped for a 1-for-5 reverse decision, which kept the stock at a price of above $1.00 per share. The company’s stock had closed its last trading session at $0.49 per share.
The consensus recommendation that Zacks Investment Research has on the stock is of 5 on a 1 out of 5 scale, with the 1 representing a “Strong Buy” and the 5 representing a “Strong Sell.”
MannKind last posted its quarterly earnings results on February 1, 2017, when the company unveiled earnings of 26 cents per share, handily beating the six-cent-per-share loss that Wall Street had called for.
MNKD stock declined 13% during regular trading hours Friday.