HZNP - Arcimoto (FUV) Stock Falls After 1-for-20 Reverse Split
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Arcimoto (NYSE:FUV) stock isn’t doing so hot as the electric vehicle (EV) company’s shares are falling following a one-for-20 reverse stock split.
That reverse stock split has Acrimoto consolidating down twenty shares of its stock into a single share. The goal of this reverse stock split is to increase the company’s share price above $1. Doing so allows it to avoid delisting from the Nasdaq Exchange.
The Arcimoto reverse stock split went into effect after markets closed on Tuesday. That resulted in shares trading under the increased price when markets opened this morning. It’s worth noting that a reverse stock split doesn’t change a company’s market capitalization or investors’ shares in the company.
Why Is FUV Stock Down?
When a company has to use a reverse stock split to avoid being delisted, it doesn’t inspire confidence in investors. As a result, it’s not uncommon to see a company’s shares drop after undergoing the reverse stock split.
This can also cause investors to sell after the split has happened. That appears to be what’s happening today with some 108,000 shares of FUV stock on the move. For the record, the company’s daily average trading volume is closer to 52,000 shares.
FUV stock is down 3.1% as of Wednesday morning.
There’s more stock market news traders need to know about below!
InvestorPlace is home to all of the most recent stock news happening on Wednesday! Among that is what has shares of Chinese electric vehicle (EV) stocks rising, the latest news from XPeng (NYSE:XPEV), as well as why Horizon Therapeutics (NASDAQ:HZNP) stock is on the rise. You can catch up on all of this news at the following links!
More Wednesday Stock Market News
- Why Are Chinese EV Stocks XPEV, LI, NIO Up Today?
- Why Is Xpeng (XPEV) Stock Up 35% Today?
- Why Is Horizon Therapeutics (HZNP) Stock Up 30% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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