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Investors in Mullen Automotive (NASDAQ:MULN) are seeing some impressive price action building today. Shares of MULN stock are now up more than 5% at the time of writing on news that shareholders in the company have approved a reverse stock split, but the company may choose not to enact it. Broadly bullish momentum in the markets is also helping matters, driven by a better-than-expected PCE report today.
With prices rising slower than expected in December, a moderation in inflation could lead to more accommodative monetary policy down the road. For early-stage high-growth companies such as Mullen, that’s welcome news. Indeed, the monetary policy tightening we’ve seen has impacted shares of such companies to a greater degree than more established firms over the past year.
That said, the company’s prospective reverse stock split is a bigger concern for investors right now. While shareholders have approved a split, reports that the company is holding off on initiating this split until it’s absolutely necessary are intriguing investors.
Mullen is likely to complete its reverse split in the coming weeks with a March 6 deadline looming. However, given the strong price action the company has seen of late, perhaps it’s possible for MULN stock to rise past the $1 threshold in time. At roughly 33 cents at the time of writing, that seems unlikely, but who knows.
Let’s dive into what investors may want to…
