Powerbridge (NASDAQ:PBTS) stock is falling on Friday after the Chinese software company enacted a 1-for-8 reverse stock split.
Powerbridge notes that the reverse stock split went into effect after markets closed on Thursday. That saw shares of PBTS stock start to trade on an adjusted basis when markets opened this morning.
The reverse stock split has eight shares of PBTS stock consolidating into a single share of stock. The company’s shares continue to trade under the same stock ticker but now have the new CUSIP number G72007126.
Why the PBTS Reverse Stock Split?
The reverse stock split is likely an effort by Powerbridge to increase the price of its common stock. The company received a warning from the Nasdaq Exchange last month that it wasn’t compliant with the minimum bid price requirement.
The Nasdaq Exchange requires that the company’s stock maintains a minimum bid price of $1 per share. Prior to the reverse stock split, shares of PBTS were trading at 26 cents each. The reverse stock split boosts the shares above the $1 minimum with them trading at about $1.44 as of this writing.
PBTS stock is down 31.8% as of Friday morning, with more than 380,000 shares changing hands. For comparison, its daily average trading volume is about 443,000 shares.
Investors looking for even more of the most recent stock market stories today are in the right place!
We’ve got all of the biggest stock market news that traders need to know about on Friday! A few examples include what has MicroAlgo (NASDAQ:MLGO) stock rocketing higher, details on an upcoming Meta Platforms (NASDAQ:META) event, as well as why Alibaba (NYSE:BABA) stock is rising today. All of that news is ready to go at the links below!
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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.
