Why Sundial Growers Stock Is Sinking Today
Shares of Sundial Growers (NASDAQ: SNDL) were sinking 15.3% as of 11:29 a.m. ET on Tuesday. A quick glance at a chart for the cannabis stock, though, might lead you to believe otherwise. Sundial's share price opened nearly 833% higher on Tuesday than its Monday closing price.
However, this seemingly huge jump was entirely the result of a 10-for-1 reverse stock split. Sundial's shareholders overwhelmingly approved the share consolidation at a special meeting held on Monday. The company's board of directors immediately initiated the reverse stock split following the conclusion of the shareholder meeting.
Today's decline (on an adjusted basis factoring in the reverse stock split) appears to reflect lingering uncertainty about Sundial's near-term prospects.
Source Fool.com
