Louis Navellier is rating this stock an “A” – Get In Now!

On May 24, the man who found “the stock of the century” will reveal one of his top stocks for 2022 – for FREE – in a special presentation.

Tue, May 24 at 4:00PM ET

Office Depot Reverse Stock Split: 13 Things for ODP Stock Investors to Know

Office Depot (NASDAQ:ODP) has undergone a reverse stock split in an attempt to bolster the value of the company’s stock.

Office Depot Reverse Stock Split: 13 Things for ODP Stock Investors to Know

Source: Jonathan Weiss / Shutterstock.com

Here’s what investors need to know about the Office Depot reverse stock split.

  • The reverse stock split takes place on a 1-for-10 ratio and went into effect on Tuesday.
  • This has the company reducing its outstanding share count from 526 million shares to 52.6 million shares.
  • The reverse stock split doesn’t allow for fractional shares.
  • Any investors that would receive fractional shares of ODP stock will instead be granted cash equal to the value of those shares.
  • This also doesn’t affect the overall ownership of investors in the company.
  • The plan was approved by investors on May 11 and they don’t have to take any action as a result fo the reverse split.
  • To go along with this, Office Depot has undergone a reorganization of the company.
  • This has it reorganizing with The ODP Corporation serving as the new holding company for the business.
  • The ODP Corporation also takes over as the public company connected to ODP stock on the Nasdaq.
  • The ODP Corporation notes that there are several benefits to restructuring as a holding company.
  • These include simplifying legal and tax matters, allowing for better management of its operating assets, and improving operational flexibility.
  • It’s also worth noting that ODP stock is seeing extra attention from Robin Hood investors after the reverse split.
  • The exact reason for this is currently unknown.

ODP stock was down 7.6% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/07/office-depot-reverse-stock-split-details/.

©2022 InvestorPlace Media, LLC