Workhorse (WKHS) Stock Plunges 11% on 1-for-20 Reverse Stock Split

  • Workhorse (WKHS) stock is down on Thursday on plans for a reverse split.
  • That will see the company consolidate 20 shares into a single share.
  • It’s doing so to meet the minimum bid price to maintain its listing.
WKHS Stock - Workhorse (WKHS) Stock Plunges 11% on 1-for-20 Reverse Stock Split

Source: T. Schneider / Shutterstock.com

Workhorse (NASDAQ:WKHS) stock is a hot topic on Thursday after the technology company announced plans for a 1-for-20 reverse stock split.

Workhorse is moving forward with plans for a reverse stock split after getting approval from investors during its 2024 Annual Shareholder Meeting. Stockholders approved the board of directors’ ability to enact a reverse stock split ranging from 1-for-10 to 1-for-20.

With that approval, 20 shares of WKHS stock will be consolidated into a single share when markets open on June 17. The shares will continue to trade under the same ticker after the reverse split.

What’s Behind the WKHS Reverse Stock Split?

Workhorse is enacting this reverse stock split to boost the price of WKHS shares. It’s doing this to regain compliance with listing requirements for the Nasdaq Exchange. Currently, the stock doesn’t meet the $1 minimum bid needed to maintain its listing.

Workhorse notes that it has until Sept 16 to regain compliance with this Nasdaq rule. This will require its shares to trade above the $1 minimum for at least 10 consecutive days.

WKHS stock is down 10.9% as of Thursday morning. It’s also seen some 13 million shares change hands. That’s closing in on its daily average trading volume of about 16 million units.

Investors will want to keep reading for more of the most recent stock market stories!

We have all of the hottest stock market news investors need to know about on Thursday! A few examples include what’s happening with Williams-Sonoma (NYSE:WSM), Broadcom (NASDAQ:AVGO) and Tesla (NASDAQ:TSLA) shares today. All of this info is ready to go at the links below!

More Stock Market News for Thursday

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 risks.

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/2024/06/workhorse-wkhs-stock-plunges-11-on-1-for-20-reverse-stock-split/.

©2024 InvestorPlace Media, LLC