Globavend Holdings Limited (NASDAQ:GVH) stock experienced a surge in after-hours trading. The company’s stock price rose by 37.99% to $9.88.
Check out how GVH stock is trading here.
What Happened: The surge in stock price follows the company’s recent announcement of a 1-for-200 reverse stock split. This decision was made by the company’s board of directors and approved by the majority of its shareholders at an extraordinary general meeting held on April 28. The reverse stock split will be effective from July 21.
As a result of the reverse stock split, the number of outstanding shares of the Australia-based e-commerce logistics company will be reduced from approximately 253 million to approximately 1.27 million. The reverse stock split will not affect any rights or preferences of the company's shares. The par value of the ordinary shares will be proportionally increased from $0.001 to $0.20.
Why It Matters: The recent movement in Globavend ‘s stock appears to be driven by a combination of factors. In June, GVH expanded its e-commerce logistics presence through a strategic alliance with beauty retailer Strawberrynet. Earlier in the month, Litchfield Hills initiated coverage on GVH with a buy rating and a price target of $0.4, contributing to the surge in stock value.
The recent surge in GVH’s stock value is a significant development for the company, especially considering the recent reverse stock split and trading halt (on Monday, at approximately 3:00 p.m. ET). The rebound in stock value suggests that investors may be regaining confidence in the company’s future prospects.
Despite the recent fluctuations, Globavend‘s stock value is still a long way off from its year range high of $366.00, indicating that there may still be room for further growth.
Price Action: GVH surged 1.99% to close at $7.16 on July 21, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate Globavend stocks have negative trends across all time frames. Know how the stock fares on other parameters here.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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