Russell Indices Will Drop Mullen (MULN) Stock Today

Source: Ringo Chiu / Shutterstock

It’s an unfortunate day for fans of Mullen (NASDAQ:MULN) stock, as the downtrodden electric vehicle (EV) maker is expected to be removed from the Russell 2000 Index. Indeed, the index’s annual reconstitution process is almost complete and Mullen will unfortunately lose its spot on the list.

What does this mean for MULN stock?

Well, likely nothing good. Mullen’s removal comes as a function of Russell’s $1 minimum closing price requirement. As part of Russell’s annual reconstitution that sees the index make changes to its division between large, mid and small capitalization stocks, Russell removes any stocks that fail to meet its $1 minimum bid price come “rank day.” This year, rank day fell on April 28. MULN closed on April 28 with a pre-split share price of roughly 8 cents.

While companies with an average closing price of at least $1 over the 30 days preceding rank day can be considered exempt from removal, Mullen unfortunately doesn’t qualify. In fact, Mullen initiated its 1-for-25 reverse stock split on May 4, after Russell’s rank day. In the 30 days before April 28, MULN’s average share price was below $1.

June 23 marks the final confirmation of the Russell 2000’s reconstitution.

MULN Stock Climbs Despite Impending Removal

Despite Mullen’s bearish removal from the Russell 2000, MULN stock is actually up today by around 1% as of this writing. The company has been on a downward slide in 2023, however: MULN stock is down more than 95% year-to-date (YTD) as it also flirts with delisting from the Nasdaq.

Indeed, while the Nasdaq has a number of procedures in place to allow companies to regain compliance with its $1 dollar minimum share price, MULN’s time may be running short. The EV maker has until Sept. 5 to regain compliance. Otherwise, it faces removal — or an additional hearing with the exchange to gain another extension.

With the company below $1 again after just conducting a reverse split, Mullen would likely have to perform another split to get back up to one dollar from its current 18 cent price point.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

x  Powerful Protection for WordPress, from Shield Security
This Site Is Protected By
Shield Security