Rigel Pharmaceuticals (RIGL) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Rigel Pharmaceuticals completed a reverse stock split at a ratio of 1-for-10 to raise its per share trading price and maintain Nasdaq listing compliance. However, this move may limit market trading liquidity due to a reduced number of shares outstanding and could have an anti-takeover effect by increasing authorized but unissued shares. While the stock split aimed to improve marketability to institutional investors, the potential for issued shares to deter beneficial takeovers poses a risk. Additionally, there is no guarantee that the reverse stock split will achieve the intended price stability or attractiveness to investors.
Overall, Wall Street has a Moderate Buy consensus rating on RIGL stock based on 1 Buy and 2 Holds.
To learn more about Rigel Pharmaceuticals’ risk factors, click here.