UBER - What Is Going on With Nabriva Therapeutics (NBRV) Stock Today?
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Nabriva Therapeutics (NASDAQ:NBRV) stock caught the attention of traders on Friday after shares surged in price this morning. However, not all is as it seems.
While shares of NBRV stock rocketed more than 2,000%, that was only due to the company’s stock undergoing a reverse stock split. This saw it consolidate 25 shares of NBRV stock into a single share of stock.
Whne this happens, it doesn’t affect the total stake an investor holds in NBRV. Instead, it just sees the total number of outstanding shares reduced. In this case, it drops outstanding shares from 69.7 million to approximately 2.8 million.
NBRV Stock Avoids Delisting
Companies choose to enact reverse stock splits for several reasons. That includes boosting the price of their stock to meet minimum listing requirements. This is the case for NBRV stock as it previously was below the $1 minimum needed to remain on the Nasdaq Exchange.
With the reverse stock split, the biopharmaceutical avoided delisting by boosting its share price from around 18 cents to the mid $4 range. This follows up on a shareholder vote back in August that gave the company’s Board of Directors permission to move forward with the reverse stock split.
Today’s reverse stock split has NBRV experiencing heavy trading. As of this writing, over 1 million shares have changed hands. That’s well above its daily average trading volume of about 100,000 shares.
NBRV stock is down 35% as of Friday morning.
Investors seeking out more of the latest stock market news are in luck!
InvestorPlace is home to all of the hottest stock market news for Friday! That includes why shares of Uber Technologies (NYSE:UBER), General Electric (NYSE:GE), and FedEx (NYSE:FDX) stock are in the news today. You can catch up on all of that news at the links below!
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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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