Why Crown Electrokinetics Shares Are Sinking

Crown Electrokinetics Corp. CRKN shares are trading lower Friday after the company announced it will implement a 1-for-150 reverse stock split. 

The Details:

The company said it expects to implement a 1-for-150 reverse stock split on its common stock with trading to begin on a split-adjusted basis at the market open on Tuesday, June 25. 

On June 12, Crown Electrokinetics announced that its request for continued listing on the Nasdaq was approved, contingent upon meeting all applicable criteria by July 23.

In May, Crown Electrokinetics secured a long haul dark fiber construction project spanning approximately 250 miles from Las Cruces, New Mexico to El Paso, Texas and representing a $12 million gross revenue opportunity. 

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Is CRKN A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Crown ElectroKinetics‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Crown ElectroKinetics does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 9.58%, you'll need to buy a share of Timbercreek Financial by June 28, 2024. Once done, you can expect to receive a nominal payout of $0.06 on July 15, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Crown ElectroKinetics will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

CRKN Price Action: According to Benzinga Pro, Crown Electrokinetics shares are down 23.8% at 3 cents at the time of publication Friday.

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