ToughBuilt Industries (NASDAQ:TBLT) stock is rocketing higher today and it has some investors wondering what’s behind the massive movement.
To clear things up, ToughBuilt Industries didn’t actually soar 10,000% higher this morning. Instead, the company enacted a 1-for-150 reverse stock split. This was part of its plan to regain compliance with the $1 minimum for trading on the Nasdaq Exchange.
This reverse stock split has ToughBuilt Industries consolidating down 150 shares of its stock into a single share. That takes the total number of shares from 154,300,090 to 1,028,625 after today’s action.
ToughBuilt Industries put the reverse stock split to vote on April 1, 2022 and shareholders approved it. It put out a press release a few days ago announcing that the reverse stock split would go into effect today.
ToughBuilt Industries was also recently in the news thanks to its most recent earnings report. The company matched Wall Street’s revenue estimate for the period with a record $24.6 million. It intends to further grow its business with new product launches this year.
Following today’s reverse stock split, TBLT shares are seeing light trading. This only has around 380,000 shares changing hands as of this writing. That’s well below the company’s daily average trading volume of 9.1 million shares.
TBLT is down 43.3% as of Monday morning. It’s typical for a company’s stock to fall after the initial price jump from a reverse stock split.
Investors seeking more stock market news are in the right place!
We’ve got all the most recent stock news traders need to know about for Monday! A few examples include what has Coca-Cola (NYSE:KO) and Twitter (NYSE:TWTR) stock rising, as well as this morning’s biggest pre-market stock movers. You can find out all about these matters at the following links!
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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.