Why Pineapple Energy Stock Is Down
Portfolio Pulse from Erica Kollmann
Pineapple Energy Inc. (NASDAQ:PEGY) shares fell after announcing a 1-for-50 reverse stock split to regain Nasdaq compliance. The split reduces outstanding shares from 133.3 million to 2.66 million, aiming to increase the stock price. Shares are trading below the 50-day moving average.
October 15, 2024 | 4:42 pm
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NEGATIVE IMPACT
Pineapple Energy's stock is down due to a 1-for-50 reverse stock split aimed at increasing the share price to meet Nasdaq's minimum bid requirement. The split significantly reduces the number of outstanding shares.
The reverse stock split is a significant corporate action that directly impacts the stock price by reducing the number of shares and is intended to increase the market price per share. However, the immediate market reaction is negative, with shares down 14.7%, indicating investor concern or skepticism about the company's prospects post-split.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100