Shares of Camber Energy (NYSEMKT:CEI) closed higher by about 77% following last week’s announcement that the company’s board had approved a 1-for-50 reverse stock split. Camber originally expected the consolidation to be active on the morning of Dec. 30. However, a press release published last Friday shows that the consolidation date will now be active on the morning of Dec. 21.
Following the reverse split, there will be a total of 20 million authorized shares, down from 1 billion. Furthermore, there will be about 16.3 million shares of outstanding common stock, down from 814.4 million. So, why exactly is Camber pursuing a reverse split?
Last month, the energy company received a compliance notice from the NYSE American Exchange. NYSE American pointed out that the average 30-day trading price of CEI stock was less than the minimum requirement price of 20 cents, which is a violation. As a result, Camber has until May 7, 2023 to regain compliance.
With a solution in store, pressure has been eased on CEI. Let’s take a look at the investors betting big on the company.
5 Investors Betting Big on CEI Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 52 funds reported owning CEI, which remained unchanged from Q2. Meanwhile the institutional put/call ratio sits at 0.09, down from 0.25. That’s equivalent to about 341,600 puts and 3.6 million calls, implying a bullish options stance. With that in mind, let’s dive into Camber’s top five investors. Please note that this list only includes investors who filed a Q3 position update. For example, Antilles Family Office owns 39.93 million shares, although that figure is only accurate as of May.
- Vanguard: 15.29 million shares. Vanguard sold 1.6 million shares during Q3.
- BlackRock (NYSE:BLK): 6.57 million shares. BlackRock purchased 19,410 shares during Q3.
- Geode Capital Management: 3.64 million shares. Geode purchased 755,640 shares during Q3.
- State Street (NYSE:STT): 1.11 million shares. State Street’s position remained unchanged during Q3.
- Two Sigma Investments: 817,743 shares. Two Sigma purchased its entire stake during Q3.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Eddie Pan did not hold (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.
