Skillz (NYSE:SKLZ) stock is in the news Friday after the company announced a reverse stock split that goes into effect today.
This reverse stock split has the company consolidating every 20 shares of SKLZ stock into a single share. The split goes into effect today and the stock will start trading on a split-adjusted basis when markets open on Monday.
Skillz notes that its shares will continue to trade on the New York Stock Exchange after the split. They will also retain the SKLZ ticker but will switch to a new CUSIP number, 83067L208. This won’t change the stock’s market capitalization or stake percentages. What it will change, however, is outstanding shares from 354.69 million to 17.73 million.
What’s Behind the SKLZ Reverse Stock Split?
Skillz is enacting this reverse stock split as a way to boost the price of its shares. The company is doing so to push the price of its shares above $1. That is due to its stock trading below that, which puts it in danger of being delisted from the New York Stock Exchange.
With news of this reverse split comes heavy trading of SKLZ stock. This has more than 8 million shares changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 6.5 million shares.
SKLZ stock is down 17.6% as of Friday morning but only down 3.9% year-to-date (YTD).
Investors looking for more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the latest stock market news that traders need to know about on Friday! Among our coverage is what’s happening with shares of SoFi (NASDAQ:SOFI), 3M (NYSE:MMM) and Carmax (NYSE:KMX) stock today. All of this news is ready to go at the links below!
More Stock Market News For Friday
- SOFI Stock Price Prediction: Is SoFi Really Worth Just $5?
- 3M (MMM) Stock Pops After Reaching $12.5 Billion Settlement
- Why Is Carmax (KMX) Stock Up 9% 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.
