Toughbuilt Stock Got Hammered On Tuesday: What's Been Going On?
Portfolio Pulse from Ryan Gustafson
ToughBuilt Industries, Inc. (NASDAQ:TBLT) experienced a decline in stock price on Tuesday after beginning to trade on a split-adjusted basis due to a reverse stock split. The reverse stock split was at a ratio of 1 post-split share for every 65 pre-split shares, effective after market close on Jan. 1. The decision was authorized by stockholders at the annual meeting on Dec. 11. Trading had been halted the previous Friday and resumed on Tuesday morning. The stock closed down 15.1% at $8.69.
January 02, 2024 | 9:10 pm
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ToughBuilt Industries' stock price fell by 15.1% to $8.69 following a reverse stock split, which adjusted trading on a 1-for-65 basis.
The significant drop in ToughBuilt's stock price is likely due to the reverse stock split, which can be perceived negatively by the market as it often signals that a company is trying to boost its share price to meet exchange listing requirements or to appear more financially stable. The resumption of trading after a halt and the immediate decline in price suggest a negative short-term impact on investor sentiment.
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IMPORTANCE 90
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