Shares of Camber Energy (NYSEMKT:CEI) closed higher by about 77% following last week’s announcement that the company’s board had approved a 1-for-50 reverse stock split. Camber originally expected the consolidation to be active on the morning of Dec. 30. However, a press release published last Friday shows that the consolidation date will now be active on the morning of Dec. 21.
Following the reverse split, there will be a total of 20 million authorized shares, down from 1 billion. Furthermore, there will be about 16.3 million shares of outstanding common stock, down from 814.4 million. So, why exactly is Camber pursuing a reverse split?
Last month, the energy company received a compliance notice from the NYSE American Exchange. NYSE American pointed out that the average 30-day trading price of CEI stock was less than the minimum requirement price of 20 cents, which is a violation. As a result, Camber has until May 7, 2023 to regain compliance.
With a solution in store, pressure has been eased on CEI. Let’s take a look at the investors betting big on the company.
5 Investors Betting Big on CEI Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 52 funds reported owning CEI, which remained unchanged from Q2. Meanwhile the institutional put/call ratio sits at 0.09, down from 0.25. That’s equivalent to about 341,600 puts and 3.6 million calls, implying a bullish…
