Shares of Hycroft Mining Holding Corp. (HYMC) saw a 3.5% increase in morning trading on Wednesday following the implementation of a 1-for-10 reverse stock split. The stock had previously closed on Tuesday at a split-adjusted record low of $1.76, or 17.6 cents before the split. This move was made by the company with the intention of increasing the stock's price above the Nasdaq's minimum bid requirement of $1 for listing purposes.
Rise and Fall of Hycroft's Stock
Hycroft's stock had gained significant attention from "meme" stock traders in March 2022. During that month, the stock soared by an impressive 641.7%, closing at $23.00 on March 31, 2022. This surge was influenced by the disclosure made by AMC Entertainment Holdings Inc. (AMC), another notable "meme" company, which revealed their ownership of 46.8 million Hycroft shares, equivalent to 35.8% of the total shares available.
However, since the end of March 2022, Hycroft's stock has experienced a substantial decline of 92%. Over the past three months, Hycroft shares have shed 49% of their value, while AMC's stock has also tumbled by 74.9%. In contrast, the S&P 500 has shown a modest gain of 1.8% during this period.
Given the recent reverse stock split and the fluctuating nature of Hycroft's stock performance, investors will be closely monitoring its future movements in the market.