## Pineapple Energy (PEGY) Stock Plunges After Reverse Stock Split Announcement
The stock market is known for its volatility, and Tuesday was no exception for Pineapple Energy Inc. (PEGY) investors. The company’s shares took a significant dive after announcing a 1-for-50 reverse stock split, a move that has left many wondering about the future of PEGY.
The reverse stock split, which will take effect on Thursday, October 17th, aims to increase the market price per share of PEGY’s stock. This strategic maneuver is designed to help the company regain compliance with the Nasdaq minimum bid price requirement. The split will reduce the number of outstanding shares from a hefty 133.3 million to a more manageable 2.66 million.
While the reverse split might seem like a positive step for the company, its impact on PEGY’s stock price has been immediate and negative. Trading volume on Tuesday has been exceptionally high, with shares plummeting well below their 50-day moving average of 51 cents.
How to Invest in PEGY
Despite the recent downturn, investors might be curious about how to participate in the market for Pineapple Energy. The usual route is through a brokerage account, where you can buy shares or even attempt to bet against the company. Many platforms allow fractional share purchases, meaning you can invest in a portion of a share without buying the whole thing. This is especially beneficial for stocks like Berkshire Hathaway or Amazon.com, where a single share can be quite expensive.
In the case of PEGY, currently trading at $0.11 per share, an investment of $100 would buy you 909.09 shares. However, if you’re looking to bet against the company, the process is more complex. You’ll need access to an options trading platform or a broker who allows short selling. This involves borrowing shares to sell them with the intention of buying them back at a lower price, profiting from the price difference.
PEGY’s Price Action
At the time of publication on Tuesday, PEGY shares were down a significant 14.7% at 10 cents. This sharp decline highlights the market’s uncertainty surrounding the reverse stock split and its potential impact on the company’s future. Investors will be closely watching how the market reacts to the split, which could determine the direction of PEGY’s stock in the coming days and weeks.