Why Sonnet BioTherapeutics (SONN) Shares Are Down 19% Today

Sonnet BioTherapeutics Holdings, Inc. SONN shares are trading lower by 19.9% to 72 cents Wednesday afternoon after the company announced a 1-for-8 reverse stock split.

What Else: Sonnet BioTherapeutics says the reverse stock split will be effective for trading on September 30. The move is aimed at meeting Nasdaq’s $1.00 minimum bid price requirement.

The reverse split will reduce the company’s outstanding shares from 5.2 million to approximately 650,300, while maintaining the same par value and authorized share count.

The reverse split will also proportionately adjust warrants, stock options and equity incentive plans. Per Sonnet, stockholders approved this action on September 12.

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Should I Sell My SONN 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 Sonnet BioTherapeutics have lost 72.99% year to date. This compares to the average annual return of -83.32%, meaning the stock has outperformed 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.

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SONN has a 52-week high of $3.05 and a 52-week low of $0.62.