That’s when the company expects shares of ZEV stock to start trading on a split-adjusted basis. The company is enacting a 1-for-20 reverse stock split after markets close on April 27, which is this coming Thursday.
Lightning Emotors notes that the reverse stock split will see it consolidate every 20 shares of ZEV stock into a single share. This will boost the company’s share price without altering investors’ stakes in the company.
The reverse stock split is likely the company’s effort to increase its stock price. The prior closing price for ZEV yesterday was roughly 33 cents per share. That low price allows for easy manipulation of the stock and also puts it in danger of being delisted.
How This Is Affecting ZEV Stock Today
While a reverse stock split has no technical effect on the overall value of an investment, investors still don’t often react well to them. These kinds of splits harm confidence in the company, which sometimes sees shareholders selling the stock leading up to the split.
For example, some 2.1 million shares of ZEV stock have changed hands as of this writing. That’s already above the company’s daily average trading volume of about 1.7 million shares. Also, ZEV is down 28.8% as of Tuesday morning.
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 traders need to know about on Tuesday! Among that is what has shares of Coinbase (NASDAQ:COIN), Nikola (NASDAQ:NKLA) and 3M (NYSE:MMM) stock moving today. You can find all of that news at the links below!
More Tuesday Stock Market News
- COIN Stock Alert: What to Know as Coinbase Sues the SEC
- Nikola (NKLA) Stock Pops on Canadian Expansion News
- 3M Layoffs 2023: What to Know About the Latest 3M Job Cuts
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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.