- BEST Inc. (NYSE:BEST) stock underwent an American Depositary Shares (ADS) ratio change
- This saw it switching from a one-for-one ratio to a five-for-one ratio
- This pushed the stock’s price back above $1 per share
BEST Inc. (NYSE:BEST) stock is rocketing higher on Friday, but it’s not due to any positive news from the Chinese company.
Instead, it has to do with the ratio for its American Depository Shares (ADS). The company changed this ratio today to a five-for-one. As expected, this saw the price of its shares skyrocket. The prior ratio was one-for-one.
A ratio change doesn’t actually affect the overall value of BEST stock. Instead, it changes how it’s listed. Companies do this from time to time to adjust their share price for various reasons. The could be to regain listing compliance or to give the stock a more attractive value.
In the case of BEST stock, the company was likely looking to boost its share price above $1. That’s the minimum required for a stock to stay on the New York Stock Exchange. Prior to that ratio change, BEST shares were trading for about 28 cents each.
While likely not a major factor affecting BEST stock, it’s worth noting the release of its environmental, social and governance (ESG) report for 2021. This covers the ESG initiatives the company introduced over the prior year.
BEST stock is also seeing heavy trading today alongside its earnings report. This has some 2 million shares on the move. That’s well above its daily average trading volume of about 1.9 million shares.
BEST stock is down 19.6% as of Friday afternoon after adjusting for its ADS ratio change.
There’s more stock market news for traders to jump into below!
We’ve got all the hottest stock news that investors need to know about for Friday! Among that is what has shares of Apple (NASDAQ:AAPL), Ross Stores (NASDAQ:ROST) and SIGA Technologies (NASDAQ:SIGA) on the move. You can read up on all of that at the following links!
More Friday Stock Market News
- Legendary Investor Michael Burry Is Betting Against Apple (AAPL) Stock
- Why Is Ross Stores (ROST) Stock Down 22% Today?
- Monkeypox Stocks: SIGA, EBS and TNXP Move Higher on Smallpox Vaccines, Treatments
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.
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