Ashford Hospitality Trust (NYSE:AHT) stock is on the move Monday thanks to the real estate investment trust completing a reverse stock split.
Here’s everything traders need to know about the reverse stock split for AHT shares.
- To begin with, the reverse stock split is on a 1-for-10 basis.
- That means the company is consolidating down 10 shares of its stock into one share.
- This will have it reducing its total number of shares on the market from 265.1 million shares to 26.5 million shares.
- However, this won’t result in major changes in ownership as the change is taking place across the board.
- The only slight changes investors will see are cash payouts due to the company not allowing for fractional shares.
- Ashford Hospitality Trust completed its reverse stock split after markets closed on Friday.
- That means today is the first day those shares will trade on an adjusted basis.
- Ashford Hospitality Trust enacting this reverse stock split will bring its shares out of the penny stock range.
- The company hopes that doing this will draw in more long-term investors.
- That could, in turn, mean that the stock sees less volatility from retail traders pumping and dumping penny stocks.
- While AHT stock will continue to trade under the same ticker after the reverse stock split, it will trade under a new CUSIP number.
- Interested investors will want to keep a close eye on AHP stock today as it could see heavy trading and volatility following the reverse stock split.
AHT stock was up 792.3% in pre-market trading on Monday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.