ReShape Lifesciences Announces Reverse Stock Split

ReShape Lifesciences ( (RSLS) ) has provided an update.

On May 6, 2025, ReShape Lifesciences Inc. announced a 1-for-25 reverse stock split of its common stock, which became effective for trading on May 9, 2025. This move, approved by stockholders on April 1, 2025, aims to adjust the number of shares and their value without altering the total authorized shares, thereby increasing the availability of shares for issuance. The reverse stock split is intended to enhance the company’s stock market position and potentially impact its stakeholders by adjusting the share structure.

Spark’s Take on RSLS Stock

According to Spark, TipRanks’ AI Analyst, RSLS is a Underperform.

ReShape Lifesciences is facing significant financial challenges, with persistent losses, negative equity, and cash flow issues. The technical indicators show a bearish trend with potential oversold conditions. Valuation is poor due to a negative P/E ratio. Despite some positive developments highlighted in the earnings call, such as revenue growth and cost reductions, the overall outlook remains concerning due to financial instability and competitive pressures. The recent board resignation further complicates the situation by potentially affecting compliance and investor confidence.

To see Spark’s full report on RSLS stock, click here.

More about ReShape Lifesciences

ReShape Lifesciences Inc. is a leading company in the weight loss and metabolic health solutions industry, providing a range of products and services aimed at managing and treating obesity and metabolic diseases. Their offerings include the FDA-approved Lap-Band System for minimally invasive obesity treatment, the investigational Diabetes Bloc-Stim Neuromodulation system for type 2 diabetes, and the Obalon balloon technology for non-surgical weight loss.

Average Trading Volume: 18,039,686

Technical Sentiment Signal: Sell

Current Market Cap: $3.99M

See more data about RSLS stock on TipRanks’ Stock Analysis page.