VER - Why VEREIT Stock Rocketed Higher at the Open Today
On Thursday, shares of VEREIT (NYSE: VER) closed at around $7.70 a share. Today, they opened the day at around $37 per share. The math on that gain, however, isn't worth doing. This price move was expected well in advance and is virtually meaningless.
On Nov. 5, when the net-lease real estate investment trust (REIT) announced its third-quarter earnings, management also released plans to do a 1-for-5 reverse stock split . That split took place after the close yesterday. Stock splits don't actually change anything other than the number of shares. Whatever proportional ownership shareholders had before the split is the same after the split. The dividend, meanwhile, will now be $0.385 per share per quarter, which is five times larger than it was before the reverse split.
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Why VEREIT Stock Rocketed Higher at the Open Today