Allbirds Inc. (BIRD) shares took a hit on Friday, dropping by 4.4% to 68 cents, following the company’s announcement of a 1-for-20 reverse stock split. This move, approved by both the Board of Directors and stockholders, is intended to help Allbirds meet Nasdaq’s minimum bid price requirement. The split will come into effect on September 4, 2024, with shares trading on a split-adjusted basis beginning September 5th.
This reverse stock split will essentially combine every 20 shares of Allbirds’ Common Stock into a single share. Importantly, this change will not affect stockholders’ ownership percentage. Fractional shares will not be issued; instead, stockholders will receive cash payments for any fractional shares resulting from the split.
Investors considering their holdings in Allbirds should factor in the impact of this reverse stock split. While the move aims to improve the company’s market position, it’s important to assess your individual time horizon, unrealized gains, and overall investment goals before making any decisions about buying, selling, or holding your BIRD stock.
In the past year, Allbirds shares have seen a decline of 47.98%. This means that an investor who purchased shares at the beginning of the year would be facing a loss of $0.62 per share if they sold today. However, over the past month, the stock has experienced a 9.11% rise. This means an investor who bought shares on July 1st would currently be looking at a capital gain of $0.2 per share.
Remember, individual investment decisions should be based on careful research and analysis. It’s always advisable to consult with a financial advisor before making any significant investment moves.
