SPECIAL REPORT The Top 7 Stocks for 2024

Why Is Sonendo (SONX) Stock Up 38% Today?

Advertisement

  • Sonendo (SONX) stock is bouncing back on Wednesday after getting a delisting notice.
  • The company’s shares initially dropped over 55% on the news.
  • Sonendo plans to seek approval to avoid delisting at its next shareholder meeting.
SONX Stock - Why Is Sonendo (SONX) Stock Up 38% Today?

Source: Roman Zaiets / Shutterstock.com

Sonendo (NYSE:SONX) stock is on the rise Wednesday despite the medical technology company recently receiving a delisting notice.

That notice comes from the New York Stock Exchange and has to do with the price of SONX stock. The problem the exchange has with SONX shares is how long they have been trading below the $1 minimum bid price.

Sonendo has clarified that it intends to respond to the non-compliance notice within 10 business days. The company also notes it will seek to alleviate the price deficiency by seeking approval from shareholders for actions to do so at its next meeting.

While Sonendo doesn’t mention a reverse stock split, that’s most likely how it will increase the price of its shares. This is a common tactic used by companies that are in danger of being delisted due to a low bid price. It consolidates shares to increase the price of the stock without affecting market capitalization.

SONX Stock Movement

It might seem strange that SONX stock is up alongside the delisting notice news, but there is a reason. The company’s shares initially dropped 55.6% when the news was announced yesterday. That means today’s gains are simply the stock bouncing back from the major drop in price.

SONX stock is up 37.8% as of Wednesday morning but was down 85.5% year-to-date as of yesterday’s close.

Investors looking for even 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 concerning shares of SmileDirectClub (NASDAQ:SDC) stock and more. All of that news is ready to go at the links below!

More Wednesday Stock Market News

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.


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/why-is-sonendo-sonx-stock-up-38-today/.

©2024 InvestorPlace Media, LLC