Grom Social Enterprises (NASDAQ:GROM) stock is taking a beating on Friday after the company went through a reverse stock split.
A press release from the media, technology and entertainment company announced the 1-for-20 reverse stock split a couple of days ago. That resulted in it consolidating down every 20 shares into a single share when markets opened yesterday.
The reverse stock split initially sent GROM stock falling 28.2% during normal trading hours on Thursday. This came alongside 2.7 million shares changing hands, as compared to a daily average of 78,000 shares.
It looks like that negative movement is going to continue throughout Friday with the stock down 53.3% during pre-market trading. That also comes with more than 468,000 shares of GROM stock having been traded as of this writing.
More GROM Reverse Stock Split Details
Grom notes that, after the reverse stock split, there are a total of 452,219 shares of GROM stock outstanding. The company also mentions that warrants to acquire its stock have had their exercise prices adjusted alongside the reverse stock split.
While a reverse stock split doesn’t technically affect the market capitalization of a company, that can drop alongside the stock’s value. This is because it isn’t uncommon to see a company’s shares decrease after a reverse stock split goes into effect.
Investors seeking out even more of the most recent stock market news will want to stick around!
We have all of the biggest pre-market stock movers that traders need to know about on Friday! A few examples of that are why shares of AGBA Group (NASDAQ:AGBA) stock and Impel Pharmaceuticals (NASDAQ:IMPL) stock are up today, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
More Friday Stock Market News
- Why Is AGBA Group (AGBA) Stock Up 32% Today?
- Why Is Impel Pharmaceuticals (IMPL) Stock Up 32% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
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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.
