ReShape Lifesciences shares are trading lower after the company announced a 1-for-58 reverse stock split, effective September 23.
Portfolio Pulse from Benzinga Newsdesk
ReShape Lifesciences shares fell following the announcement of a 1-for-58 reverse stock split, effective September 23.
September 19, 2024 | 1:27 pm
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ReShape Lifesciences announced a 1-for-58 reverse stock split, leading to a decline in share price. This move is often seen as a way to boost the stock price by reducing the number of shares outstanding.
Reverse stock splits are typically implemented to increase the stock price by reducing the number of shares outstanding. However, they can be perceived negatively by investors as they may indicate underlying financial issues. The immediate market reaction was a decline in share price, reflecting investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100