Why Safe & Green Holdings (SGBX) Shares Are Falling

Safe & Green Holdings Corp SGBX shares are trading lower by 16.7% to $0.12 during Tuesday’s session after the company announced a planned reverse stock split at a ratio of 1-for-20, effective May 2.

This decision was made to meet Nasdaq’s minimum bid price requirements and improve marketability. The split was approved by stockholders in December 2023, allowing the board to set the ratio at 1-for-20.

All outstanding options, warrants and equity awards will undergo proportionate adjustments. CEO Paul Galvin, expressed optimism about the company’s prospects amidst executing its business model. Each stockholder’s percentage ownership interest will remain unchanged after the split.

See Also: PayPal Raises Annual Outlook, Expands Q1 Margins Amid Competitive Pressure from Apple

Should I Sell My SGBX Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Safe & Green Holdings have lost 69.19% year to date. This compares to the average annual return of -56.6%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Safe & Green Holdings stock currently has an RSI of 41.08, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

SGBX has a 52-week high of $1.35 and a 52-week low of $0.11.