Hippo Holdings Inc. (NYSE:HIPO) made investors cautious after its board of directors approved a 1-for-25 reverse stock split plan on Monday. The $503.7-million company has now been authorized to convert every 25 HIPO stocks (issued and outstanding) into one, which will continue trading under the symbol HIPO. The split-adjusted trading date is September 30, 2022.
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While lowering the number of shares at hand, this reverse stock split would keep the stakeholders’ interest intact. For fractional shares, each shareholder would be compensated in cash.
Following this announcement, shares of this home protection insurance products and services provider declined 4.09% in Monday’s extended trade. Notably, HIPO stock increased 0.57% to close at $0.89 in the normal trading session.
On TipRanks, Hippo Holdings commands a Strong Buy consensus rating, which is based on three unanimous Buys. HIPO’s average price prediction of $3.35 mirrors upside potential of 278.53% from the current level.
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