Blue Apron Holdings Inc. (NYSE: APRN) shares have been absolutely crushed since the company came public in the summer of 2017. It seems that the company has tried everything to stay afloat, even adding a new executive earlier this week. Now the firm is doing what some call the “kiss of death,” a reverse stock split.
Note that Blue Apron shares have vastly underperformed the broad markets, with the stock down about 36% year to date. In the past 52 weeks, the stock is down 79%. Since the IPO, the stock is down roughly 94%.
The food delivery service announced that its board of directors approved a reverse stock split of the company’s Class A common stock and Class B common stock at a ratio of 1-for-15. Stockholders approved the reverse split at the company’s annual shareholder meeting on June 13.
The reverse stock split is expected to be effective after market close on June 14, 2019.
Once effective, the reverse stock split will reduce the number of shares of Class A common stock issued and outstanding from approximately 99.9 million to approximately 6.7 million, and will reduce the number of shares of Class B common stock issued and outstanding from approximately 96.4 million to approximately 6.4 million.
Also, no fractional shares will be issued in connection with the reverse stock split.
Shares of Blue Apron were last seen down 9.5% on the day to $0.59, in a 52-week range of $0.59 to $4.15. The consensus price target is $1.45.