Summary
• Ryvyl Inc. (RVYL) drops 11% in pre-market trading to $0.1398 following a reverse stock split announcement.
• The 1-for-35 split, approved by stockholders, aims to meet NASDAQ’s $1 minimum bid requirement.
• Analysts currently rate RVYL as a “Hold,” reflecting caution amid ongoing financial challenges.
Ryvyl Inc. (RVYL) is experiencing a significant downturn in pre-market trading, dropping 11% to a current price of $0.1398, down from the last close of $0.1565. The stock movement occurs amidst the announcement of a 1-for-35 reverse stock split aimed at maintaining compliance with NASDAQ listing rules.
Strategy Behind the Split
The recent announcement clarifies that the reverse stock split is intended to increase the market price per share, helping the company meet the $1.00 minimum bid requirement. This decision, approved by the board, will allow trading on a split-adjusted basis starting January 2, 2026. The company believes this measure will make investments in Ryvyl more attractive by elevating the share price.
Ryvyl recently provided updates on measures taken to address a NASDAQ delisting notice. On December 17, stockholders approved the reverse stock split as part of a broader strategy to improve the company’s standing on the exchange. This approval also included increasing the authorized shares of common stock, indicating proactive steps taken by management to maintain listing compliance.
Market and Technical Picture
From a technical standpoint, RVYL is experiencing considerable bearish momentum, with a current RSI of 26.71, suggesting the stock is oversold. The average trading volume over the past three months stands at approximately 9.87 million shares, while the recent trading volume was about 176,000 shares. The recent price movement paints a grim picture, with the stock down nearly 88% year-to-date and showing a 48% quarterly performance drop.
Support levels may be tested as the stock faces substantial downside risk, highlighted by its 52-week low down 2.19% from current levels and a staggering drop of 93% from its 52-week high. Such dramatic shifts imply a volatile trading environment as investors react to ongoing challenges.
Regulatory Filings
On December 17, Ryvyl filed an 8-K detailing the approval from stockholders concerning the reverse stock split and adjustments made for compliance with NASDAQ listing requirements. This filing further underscores the urgency with which the company approaches its market position.
Current Report (8-k)
Annual Report (10-k)
Analyst Sentiment
Currently, analysts rate RVYL as a “Hold,” reflecting caution among investors as they evaluate the newly implemented measures against the backdrop of the company’s ongoing financial struggles.
With no recent updates contributing to the upheaval in share price beyond the planned reverse split, investors are likely to remain observant on how the situation progresses into the next trading sessions. The current trading activity highlights a focus on the company’s fundamentals as market participants adjust their expectations moving forward.