ComSovereign (NASDAQ:COMS) stock is seeing massive gains this morning, which has some investors wondering what’s happening with its shares.
That comes as shares of COMS stock gain more than 8,500% in pre-market trading today. However, investors will want to know more details before they consider jumping in on what appears to be a major rally.
The big news this morning is ComSovereign enacting a reverse stock split. This saw the company condense 100 shares of COMS stock into a single share. That easily explains the skyrocketing price of shares this morning.
When a reverse stock split goes into effect, traders see the price of the stock increase. Even so, this doesn’t change investors’ stake in the company, as it reduces outstanding shares. It also doesn’t have an effect on that company’s market capitalization.
Why a Reverse Stock Split for COMS?
The reverse stock split that went into effect this morning increases the price of COMS stock to around $5 per share. The company went through with the reverse stock split as a way to get its price above the $1 minimum for the Nasdaq. Without that reverse split, the company’s shares were in danger of being delisted from the exchange.
This is why COMS stock jumped more than 8,500% on Friday morning.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace offers up all of the most recent stock coverage for traders! For Friday, that includes the biggest pre-market stock movers this morning, as well as what’s happening with shares of Nextracker (NASDAQ:NXT) and SoFi Technologies (NASDAQ:SOFI) stock. All of that news is ready to go at the links below!
More Friday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
- NXT Stock Alert: 5 Things to Know as Nextracker Starts Trading
- Insider Robert Lavet Just Sold SoFi (SOFI) Stock
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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.