CalAmp Announced 1-For-23 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
CalAmp Corp. has announced a 1-for-23 reverse stock split, according to an SEC filing. This corporate action is typically used by companies to boost the share price by reducing the number of shares outstanding, which may help in meeting minimum bid price requirements and can also reduce volatility.
January 26, 2024 | 2:09 pm
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CalAmp's reverse stock split is likely to increase the share price by consolidating shares, potentially making the stock more appealing to institutional investors and helping to meet exchange listing requirements.
Reverse stock splits are often executed to increase the market price of a company's shares. For CalAmp, this move could help maintain compliance with exchange listing requirements and may make the stock more attractive to investors who are typically interested in higher-priced shares. However, the long-term impact on the company's market value is uncertain, as the underlying fundamentals of the company do not change with a reverse split.
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