- SoFi (SOFI) is slipping on reverse stock split news.
- The company wants to vote on the matter in an upcoming shareholder meeting.
- The goal of a reverse split would be to further legitimize its shares.
That’s when SoFi plans to hold its annual shareholder meeting. A bit of news worth noting is it seeking a vote for a reverse stock split. This wouldn’t be for a split to take place, but rather to give the Board of Directors approval to do one if they so choose.
So what kind of reverse stock split is SoFi aiming for? The company doesn’t say the exact ratio but instead offers a range between a one-for-two and a one-for-10 reverse stock split. It also doesn’t say when this split may occur.
According to the company’s filing, it’s considering a reverse stock split for three reasons. The first is to increase the price of its stock in hopes of drawing in high-value investors. The second reason is to improve its perception as an investment security. Finally, the company believes a higher stock price could lead to better deals and partnerships.
SOFI stock isn’t doing so hot on Friday following the reverse stock split news. Shares are seeing weak trading with only around 24 million moving as of this writing. That’s below its daily average trading volume of about 50.5 million shares.
SOFI stock is down 3.2% as of Friday afternoon and is down 62.3% since the start of the year.
Investors seeking out more recent stock market news are in the right place!
We’ve got all the latest stock news worth reading about on Friday! That includes what’s going on with shares of Regis Corporation (NYSE:RGS), Paltalk (NASDAQ:PALT), and Advanced Micro Devices (NASDAQ:AMD) stock. You can read all of that news at the links below!
More Friday Stock Market News
- Regis Corporation (RGS) Stock Gets a 12% Boost From Partnership With Zenoti
- Paltalk Stock Soars 25% on Visicom Asset Acquisition News
- AMD Stock News: 6 Takeaways From Advanced Micro Devices' Financial Analyst Day
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.