Summary
• Co-Diagnostics, Inc. (CODX) shares fell 6% in pre-market trading to $0.1690 following a reverse stock split announcement.
• The company executed a 1-for-30 reverse stock split to bolster its Nasdaq listing, effective at 12:01 a.m.
• Despite a recent patent grant, CODX has seen a 75.9% decline year-to-date and a weak Relative Strength Index of 30.06.
Co-Diagnostics, Inc. (CODX) is trading at $0.1690 in pre-market, down 6% from the last close of $0.1807. This decline follows the company’s announcement regarding a reverse stock split, which was disclosed on December 30.
Reverse Stock Split Announcement Triggers Price Action
On December 30, Co-Diagnostics announced a reverse stock split of its common stock at a ratio of 1-for-30. This decision was filed in a Certificate of Amendment to its Certificate of Incorporation. The move aims to increase the stock price to support its listing on the Nasdaq, with the split effective at 12:01 a.m.
This announcement appears to have contributed to the stock’s pre-market drop, further emphasizing investor concern about the company’s ongoing performance, especially as it navigates a challenging market environment.
Recent Developments and Performance Context
In addition to the reverse stock split news, Co-Diagnostics has been active in other areas. The company received a grant of an Australian patent covering its Co-Dx PCR platform technologies, a significant development reported just a day earlier. However, this positive news did not appear to buoy investor sentiment, given the substantial recent performance decline of 75.9% year-to-date.
The stock’s technical indicators show a weak Relative Strength Index (RSI) of 30.06, indicating it is in oversold territory. The company has experienced considerable volatility, with a quarterly performance decrease of 51.18%. Investors will likely monitor how these changes impact trading in the upcoming sessions.
Regulatory Filings and Disclosures
Co-Diagnostics also filed an 8-K on December 30 notifying stakeholders of the reverse stock split. It is a standard procedure for publicly traded companies aiming to bolster their share price and market perception. However, this filing, while critical from a regulatory standpoint, did not provide an immediate lift to investor sentiment.
Current Report (8-k)
Annual Report (10-k)
Market and Technical Picture
The technical picture reflects significant bearish momentum, evident in the stock’s performance metrics. CODX has underperformed its moving averages considerably, with deviations of approximately -39% from the 20-day SMA and -50% from the 50-day SMA. The average volume over the last 10 days stands at over 2.2 million shares, yet today’s pre-market trading volume appears significantly lower at just 1,910.
As the company grapples with these challenges, traders and investors will be keenly observing how the share price reacts to both the reverse stock split and its technical positioning.
With no fresh catalysts beyond the reverse stock split in play, the move reflects routine market activity as participants evaluate short-term positioning.