MBRX - Why Is Axcella Health (AXLA) Stock Down 24% Today?
2023-09-15 09:01:14 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Axcella Health (NASDAQ: AXLA ) stock is taking a beating on Friday after the biotechnology company announced plans for a reverse stock split .
According to Axcella Health, shares of AXLA stock are going to undergo a 1-for-25 reverse split. This split will go into effect after markets close on Sept. 18, which will see the stock start trading on a split-adjusted basis on Sept. 19.
Investors will note that Axcella is moving forward with the reverse stock split to increase the trading price of its shares. This comes as it seeks to regain compliance with Nasdaq listing standards.
Nasdaq rules require stocks to maintain a minimum bid price of $1 per share. To put that in perspective, shares of AXLA stock closed out Thursday at a price of $1.01 cents. Falling below that minimum bid price for too long would see the shares delisted from the exchange.
What This Means for AXLA Stockholders
The reverse stock split will see Axcella consolidate every 25 shares of AXLA into a single share. This will increase the share price of the stock without changing the company’s market capitalization. It also won’t alter the stakes that investors have in the company.
AXLA stock is down 24.2% as of Friday morning.
There’s even more stock market news for investors to read about below!
We’re offering up all of the hottest stock market news that traders need to know about on Friday! A few examples of that include what’s going on with Moleculin Biotech (NASDAQ: MBRX ) and AgriFORCE Growing Systems (NASDAQ: AGRI ) stock today, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
More Friday Stock Market News
- Why Is Moleculin Biotech (MBRX) Stock Is Moving Today?
- Why Is AgriFORCE Growing Systems (AGRI) Stock Up 74% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that?InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not hold (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 .
More From InvestorPlace
- Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
- ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
- It doesn’t matter if you have $500 or $5 million. Do this now.
The post Why Is Axcella Health (AXLA) Stock Down 24% Today? appeared first on InvestorPlace .