Alight shares dropped nearly 12% in the holiday-shortened trading week after the company formally announced a 1-for-20 reverse stock split of its class A common stock. The split, ratified by shareholders earlier this month, is set to take effect after market close on Tuesday, June 30, ahead of July trading. Alight cited regaining compliance with stock exchange listing requirements as a key reason for the move. Reverse splits do not alter a company's market capitalization, but they are often viewed as a distress signal.
Alight IncAnnounced a 1-for-20 reverse stock split, often viewed as a distress signal, causing a 12% drop.