For the record, JAGX stock didn’t actually rally almost 7,000% in Monday morning trading. Instead, it only looked like that as the company enacted a 1-for-75 reverse stock split. The company’s shares continue to trade on the Nasdaq Capital Market but now use the new 47010C706 CUSIP number.
The reverse stock split allows JAGX to avoid any problems with its listing on the Nasdaq Exchange. The company’s shares were previously priced below $1 each, which doesn’t meet the minimum requirement to remain on the exchange.
With this reverse stock split, JAGX shares are now priced in the $5 range. Since this happened through a reverse stock split, it doesn’t change the stake investors have in the company, nor does it affect its market capitalization. What it doesn’t affect is outstanding shares, of which there are fewer off after the reverse stock split.
How This Affects JAGX Stock
It’s typical to see the price of a stock fall after a reverse stock split. This sometimes comes as traders exit after the company enacts one. For example, heavy trading of around 330,000 shares is dragging JAGX stock down today. For comparison, its daily average trading volume is around 106,000 shares.
JAGX stock is down 12.5% as of Monday morning.
Investors can read more of the latest stock market news below!
We’ve got all of that news ready to go with our deep dives into the market today. That includes what has shares of Mullen Automotive (NASDAQ:MULN), PayPal (NASDAQ:PYPL), and Helbiz (NASDAQ:HLBZ) on the move today. You can read all of that at the following links!
More Monday Stock Market News
- Dear MULN Stock Fans, Mark Your Calendars for Jan. 23
- Why Is PayPal (PYPL) Stock Moving Today?
- Helbiz (HLBZ) Stock Soars Another 40% in Giant Short Squeeze
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.