Hovnanian Enterprises Inc. (NYSE: HOV) is doing everything it can to stay listed on the New York Stock Exchange. The company has executed the dreaded reverse stock split to keep its shares afloat on the index.
The company announced the completion of a 1-for-25 reverse stock split of outstanding and treasury shares of its Class A common stock and Class B common stock, together with a proportionate reduction in the number of authorized shares of each such class.
The par value of the common stock was unchanged at $0.01 per share after the reverse stock split. The shares of Class A common stock began trading on a split-adjusted basis on the exchange when the market opened on March 29, 2019, under the existing symbol HOV.
In its press release the firm detailed:
The Company’s Board of Directors approved the reverse stock split at a 1-for-25 ratio also on March 19, 2019. The reverse stock split is primarily intended to increase the per share trading price of the Company’s Class A common stock to regain compliance with the minimum average closing price criteria set forth in the NYSE’s Listed Company Manual.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage ownership interest or proportionate voting power in the Company, except to the extent that the reverse stock split results in fractional shares. No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise be entitled to receive a fractional share will instead receive a cash payment.
Shares of Hovnanian were last seen at $13.32, in a 52-week range of $0.48 to $13.32.