BBY - NXTD Stock: The Reverse Stock Split News That Has Nxt-ID Tumbling This Morning
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Investors in Nxt-ID (NASDAQ:NXTD) are selling the news hard this morning after the company chalked up gigantic gains in pre-market. The mobile security outfit is seeing red today even as it posts some very good news for investors. What’s going on with NXTD stock today?
Nxt-ID is a mobile technology company based in Connecticut that focuses heavily in the health monitoring sector of on-the-go tech. It utilizes a product it calls MobileBio to help users better monitor their health through mobile computing. The company is also behind a physical product — a personal emergency response system (PERS) device.
Healthcare monitoring tech is a niche that has come into its fair bit of limelight recently. Much interest in the area comes as a result of Best Buy’s (NYSE:BBY) acquisition of U.K.-based Current Health; Current Health boasts similar offerings to what Nxt-ID offers. Not to mention, it’s also the third acquisition made by Best Buy in this sector, which its CEO lauds as one with immense growth opportunity.
NXTD Stock Tumbles as Investors Sell the News
What should be a great day for NXTD stock is turning out to be a highly turbulent one, with the company seeing huge gains in pre-market before promptly drilling downward upon the market’s open.
This volatility is the product of a big announcement made on Friday afternoon as Nxt-ID closed out the week. The companies’ shareholders voted to approve two reverse stock split proposals. The 1-for-10 split will see outstanding shares of NXTD stock dried up significantly, which will be good for investors’ portfolios as demand rises.
The news prompted huge gains in anticipation of the market’s open; NXTD saw prices surge well over 700% before Monday’s opening bell. However, things quickly dissipated as investors appear to be massively selling of the stock in an attempt to profit off of the good news. Over 1 million shares of NXTD are trading this morning, thanks to the selling; the momentum is large enough to drive the value of NXTD down over 13% to start the week.
On the date of publication, Brenden Rearick 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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