Esports Entertainment (NASDAQ:GMBL) stock is a hot topic among traders on Wednesday after the company underwent a reverse stock split.
That reverse stock split went into effect today with the company consolidating every 100 shares of GMBL stock into a single share. This has it keeping the GMBL ticker but switching to CUSIP number 29667K504.
Investors will note that Esports Entertainment got approval from shareholders for the reverse stock split in late January. That approval allowed for a reverse stock split ranging from 1-for-20 to 1-for-100. The company opted for the largest reverse stock split available.
What’s Behind the Reverse Stock Split
Another thing to keep in mind about the reverse stock split is the company’s reason for split itself. Esports Entertainment underwent the split to push shares above the $1 minimum required to remain listed on the Nasdaq. The company’s shares were trading below that previously and Esports had until March 7, 2023, to regain compliance.
It’s not uncommon to see shares of a stock drop following a reverse split. While the reverse split doesn’t often change the market capitalization of a stock, it’s still not something that markets react well to.
We’re seeing that today with shares of GMBL stock dropping 31.1% as of Wednesday morning. Even so, that still keeps it above the $1 minimum it needs to remain on the Nasdaq.
Investors looking for all of the latest stock market news for Wednesday will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage traders need for Wednesday! Among that is what has shares of CoStar (NASDAQ:CSGP), BiomX (NYSEMKT:PHGE) and Cyren (NASDAQ:CYRN) stock on the move today. All of that news is ready to go below!
More Wednesday Stock Market News
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- Why Is Cyren (CYRN) Stock Up 43% Today?
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On the date of publication, William White 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.