Why Velo3D (VLD) Shares Are Trading Lower

Velo3D Inc VLD shares are trading lower by 10.7% to $0.13 during Tuesday’s session after the company announced a 1-for-35 reverse stock split of its common stock.

The stock will trade on the NYSE on a split-adjusted basis starting June 13, under the symbol “VLD”. This reverse stock split aims to help Velo3D meet the NYSE’s minimum share price requirements.

The reverse split was approved by shareholders and finalized by the board on June 10.

See Also: General Motors Authorizes $6B Stock Buyback – More Than 10% Of Stock Float

Should I Sell My VLD 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 Velo3D have lost 94.3% year to date. This compares to the average annual return of -75.78%, 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. Velo3D stock currently has an RSI of 30.64, indicating neutral conditions.

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VLD has a 52-week high of $2.50 and a 52-week low of $0.11.