What's Going On With Nikola Stock After Its Reverse Split?
Portfolio Pulse from Erica Kollmann
Nikola Corporation (NASDAQ:NKLA) shares are trading lower after a 1-for-30 reverse stock split and the filing of a prospectus for the offering of up to 23.89 million shares. The company faces challenges including a multi-billion dollar lawsuit from its founder and pending removal from the Russell 3000 Index.
June 25, 2024 | 5:17 pm
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Nikola Corporation's shares are trading lower after a 1-for-30 reverse stock split and the filing of a prospectus for the offering of up to 23.89 million shares. The company is also facing a multi-billion dollar lawsuit from its founder and pending removal from the Russell 3000 Index.
The reverse stock split and the prospectus filing for a large number of shares typically indicate financial distress or a need for capital, which can negatively impact investor sentiment. Additionally, the lawsuit from the founder and the potential removal from the Russell 3000 Index add to the negative outlook.
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