Why Cidara Therapeutics (CDTX) Stock Is Falling
Portfolio Pulse from Henry Khederian
Cidara Therapeutics Inc (NASDAQ:CDTX) shares fell 24.4% to $0.52 after announcing a 1-for-20 reverse stock split, approved by stockholders on April 4. The reverse split is aimed at consolidating shares and will be executed proportionally among all common stockholders, with fractional shares compensated in cash. The company remains listed on the Nasdaq Capital Market.
April 22, 2024 | 7:52 pm
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Cidara Therapeutics Inc's stock fell significantly due to the announcement of a 1-for-20 reverse stock split, affecting all shareholders proportionally and compensating fractional shares with cash.
Reverse stock splits often lead to negative investor sentiment as they can be perceived as attempts to meet stock exchange listing requirements or mask underlying issues. The significant drop in CDTX's stock price reflects this typical market reaction, indicating a short-term negative impact on the stock.
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