Mr Cooper Group Inc (COOP)

[es1]

There is a second possible reason.
They are not penny stock flippers and they realize that a RS is a value neutral move.

Only skittish penny stock investors worry about the amount of shares they own and not the value they represent.
Those confused investors will run when their 100 shares turn to 10.

That just allows the calm investor the ability to lower their cost basis.

True that in pinky scams a RS is just a sign that dilution is coming.

But in any legit company a RS can actually be good for shareholders.

So the question is do we think the company is legit or a pinky scam?

Hedge funds dont invest in pinky scams.
So I would have to say that RS or not the hedge funds think this company is legit