ShiftPixy Inc PIXY shares are trading lower by 22.7% to $0.81 Thursday morning, pulling back following recent strength, after the company announced its 1-for-24 reverse stock split effective date.
ShiftPixy announced on Tuesday said that it will implement a one-for-twenty-four reverse stock split on September 30, in accordance with the company's shareholder vote on August 21.
The newly reversed shares will be tradable on Nasdaq starting October 2, 2023. Shares have otherwise fallen some 94% on a year-to-date basis.
A reverse stock split reduces the number of outstanding shares in the market, effectively decreasing the stock's float (the number of shares available for trading).
With fewer shares available, it can become more difficult for investors to buy or sell the stock, potentially creating scarcity and increased demand for the remaining shares.
According to data from Benzinga Pro, PIXY has a 52-week high of $24.97 and a 52-week low of $0.36.
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