ShiftPixy (NASDAQ:PIXY) stock is rocketing higher on Wednesday after revealing details of an upcoming reverse split.
According to a press release from the staffing solutions company, it will undergo a 1-for-24 reverse stock split at the end of the week. That will see the reverse split go into effect at 1:59:59 p.m. on Sept. 30, 2023. This will have the shares start trading on a split-adjusted basis when trading starts on Monday.
This reverse stock split will see ShiftPixy consolidate 24 four shares into a single share. That will take the company’s total number of shares issued and outstanding from 12,177,191 to 507,383.
What’s Behind the PIXY Reverse Stock Split
ShiftPixy notes that the reverse stock split is happening as a way to increase its trading price. The company is taking this action after getting a delisting notice from the Nasdaq Exchange back in June.
The problem ShiftPixy faces with delisting is its share price. The company’s stock has consistently traded below the $1 minimum bid price required to remain on the exchange. The reverse stock split allows it to increase its share price without affecting its market capitalization.
With today’s reverse stock split news, some 10 million shares of PIXY stock have changed hands. That’s already a massive leap over its daily average trading volume of about 260,000 shares. It also has PIXY stock up 162% as of Wednesday morning.
Investors looking for more of the most recent stock market stories will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! That includes the biggest pre-market stock movers this morning, the latest news for T2 Biosystems (NASDAQ:TTOO) stock, and more. All of that info is ready to go at the links below!
More Wednesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- CR Group Just Sold More Shares of T2 Biosystems (TTOO) Stock
- Dear NIO Stock Fans, Mark Your Calendars for Sept. 28
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
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.
