Theriva Biologics Inc. (TOVX) shares took a sharp dive on Monday morning, falling by 15% to $0.17 following the company’s announcement of a 1-for-25 reverse stock split. This move, set to take effect on August 26, will significantly reduce the number of outstanding common shares from 25,131,230 to 1,005,249 (excluding fractional shares). The primary objective of this reverse stock split is to ensure that Theriva Biologics meets the per-share price requirements for listing on the NYSE American.
The reverse stock split, authorized by the company’s Board of Directors on August 15, will see the company’s common stock begin trading on a split-adjusted basis when the market opens on August 26.
The decision to sell or hold TOVX stock rests largely on an individual investor’s strategy and risk tolerance. Swing traders, who seek short-term gains, might opt to sell an outperforming stock to lock in profits. In contrast, long-term investors may ride out fluctuations in anticipation of future share price growth.
Similarly, traders aiming to minimize losses could choose to sell a stock that experiences a significant decline. However, long-term investors may perceive this as an opportunity to acquire more shares at a discounted price.
It’s worth noting that Theriva Biologics shares have experienced a substantial year-to-date decline of 61.44%. This contrasts with the average annual return of -64.04%, indicating that the stock has outperformed its historical averages.
Investors can compare a stock’s movement to its historical performance to assess whether the current trend represents a typical fluctuation or a potential trading opportunity.
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