Biophytis (NASDAQ:BPTS) stock is seeing wild movement on Thursday morning, but it’s nothing for traders to be worried about.
Instead, the company has undergone a ratio change for its American Depositary Shares (ADSs). This is similar to shares of BPTS stock undergoing a reverse split. That explains why the markets are showing a massive decline or increase, depending on the source.
Investors will also want to understand the details of the ADS ratio change. The company’s ADS were previously using a 1-to-10 ratio, which means one of the ADS represented 10 of the company’s common stock. The new ratio has the company switching to one ADS representing 100 shares of the company’s common stock.
What’s Behind the BPTS Stock Ratio Change?
The ratio change boosts the price of BPTS stock. That change means that instead of trading for 41 cents at its prior close, it’s now sitting at about $4 per share in pre-market trading. This keeps it above the $1 minimum that’s required to remain listed on the Nasdaq Exchange.
Even so, BPTS is still a penny stock with a low market capitalization of $9.437 million. That means it’s still susceptible to volatility. This is especially true during pre-market trading. As of Thursday’s pre-market trading, shares are up 11.1%.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news for Thursday. A few examples include why shares of Boxed (NYSE:BOXD) and Safe & Green Holdings (NASDAQ:SGBX) stock are up, as well as the biggest pre-market stock movers this morning. You can catch up on all of that news at the following links!
More Thursday Stock Market News
- Why Is Safe & Green (SGBX) Stock Up 36% Today?
- Why Is Boxed (BOXD) Stock Up 32% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
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Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
