Despite the current volatility in the markets and overall confusion among some investors, there are still certain stocks that end up clocking eye-catching gains in the markets every day. Yesterday, it was the Avenue Therapeutics Inc (NASDAQ:ATXI) stock which had emerged as a major gainer following a key development and ended up generating gains of as much as 105% amidst considerable interest.
The company is involved in developing and commercializing therapies which are meant for treating diseases of the central nervous system. On Thursday, the company came into focus after it announced that it was going to have a 1 for 15 reverse split of its common stock.
The news seemed to have come as a source of significant excitement to investors and resulted in the remarkable rally that was seen in the stock. It is going to be interesting to see if the stock can hold on to its momentum and end up adding more to its gains today, to end the week on a fresh high.
It should be noted that it was back on July 25, 2022, that the reverse stock split had been approved by as many as 73% of the shareholders in the company. In addition to that, the shareholders also provided the board of directors with the authorization to decide on the eventual ratio of the reverse stock split.
The company’s stock is going to continue to trade under the same ticker symbol ATXI following the reverse stock split. Once the reverse stock split is completed, the number of outstanding shares in the company is going to be reduced to 1.5 million from 22.7 million. Such a dramatic reduction in the number of shares may have been the reason behind the excitement among investors on Thursday. It may be a good time to add the stock to your watch list.