Phunware (NASDAQ: PHUN) stock took a nosedive amid a reverse stock split announcement.
Phunware (NASDAQ: PHUN) stock plunged after the company disclosed a 1-for-50 reverse stock split of its common stock, effective February 26. The move aims to elevate the market price per share and fulfill Nasdaq listing requirements.
Shareholders had given the green light to this split back in December 2023. Under this restructuring, every 50 shares will merge into one without altering the overall value or stakeholders’ interests. Notably, any fractional shares will be rounded up. Post-split, the company is expected to have around 8 million shares outstanding.
The timing of this announcement coincides with Phunware’s remarkable year-to-date performance, with its shares soaring by over 131%. This surge comes in the face of growing speculation surrounding the potential political comeback of former President Donald Trump.
Phunware’s connection with Trump traces back to 2020 when the company announced its involvement in developing, launching, and managing the mobile application portfolio for the Trump-Pence 2020 Reelection Campaign.
Phunware (NASDAQ: PHUN) Stock Price Action
PHUN stock plummeted 25.07% to close at $0.19 on Friday. The traders had exchanged hands with 117,059,699 (117.05 million) shares compared to the average daily trading volume of 118.03 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
