Why iSun Stock Is Down Nearly 50%

Author: Henry Khederian | April 24, 2024 11:59am

iSun Inc (NASDAQ:ISUN) shares are trading lower by 46.6% to $0.08 during Wednesday’s session after the company announced a reverse stock split.

The company is implementing a 1-for-20 reverse stock split of its common stock, effective April 26, aimed at regaining compliance with Nasdaq’s minimum bid price requirement. Approved by the company’s stockholders and Board of Directors, the split consolidates every twenty shares into one, without altering ownership percentages.

The reverse split is intended to ensure the closing bid price remains at or above $1.00 per share for at least 10 consecutive business days by May 13.

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Should I Sell My ISUN Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of iSun have lost 80.64% year to date. This compares to the average annual return of -76.47%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. iSun stock currently has an RSI of 8.84, indicating oversold conditions.

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ISUN has a 52-week high of $0.75 and a 52-week low of $0.066.

Posted In: ISUN