Tuesday, July 26, 2022 9:50:03 PM
By Reuben Gregg Brewer - Jul 26, 2022 at 2:16PM
Key Points
McEwen Mining is a small Canadian gold and silver miner.
The company recently got approval for a reverse stock split that took effect today.
Online quote services didn't handle the change particularly well.
Motley Fool Issues Rare “All In” Buy Alert
NYSE: MUX
McEwen Mining Inc.
Market Cap
$2B
Today's Change
(-88.70%) -$2.89
Current Price
$0.37
Price as of July 26, 2022, 4:00 p.m. ET
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
McEwen Mining's stock price made a big price move, but in which direction? And is it even all that important?
What happened
Shares of Canadian precious metals miner McEwen Mining (MUX -88.70%) moved dramatically on Tuesday. The question is: in which direction? According to some quote services, the shares fell around 90% at 1:30 p.m. ET or so. Others peg the price as going up around 12%.
Obviously both of these numbers cannot be correct. Which is why it's important to check the news from the company, which basically tells us that nothing of great importance took place at the gold and silver miner today.
So what
What happened was a 1-for-10 reverse split, which was approved by shareholders on July 12. Investors who owned shares of the company yesterday now own fewer shares, but because it was related to a stock split, they still own the same percentage of the company.
The reason for the wildly different price-change data at various quote services is that stock splits are fairly unusual events that automated price systems don't handle very well. In other words, McEwen broke the internet -- or at least it upset some quote providers on the internet. Eventually, likely by tonight, the services will fix the problem.
NYSE: MUX
McEwen Mining Inc.
Today's Change
(-88.70%) -$2.89
Current Price
$0.37
MUX
Key Data Points
Market Cap
$2B
Day's Range
$0.34 - $0.37
52wk Range
$0.34 - $12.70
Volume
5,553,225
Avg Vol
166,282
P/E (ttm)
The bigger question for investors is really about why the company would do such a thing in the first place. The answer is normally that exchange rules require stocks to maintain certain price levels in order to remain listed. By doing a reverse split, the stock price gets higher, presumably to a level that is above the exchange requirement.
In this case, McEwen did, in fact, receive a notice from the New York Stock Exchange in early January that its stock had fallen below the minimum required price.
Now what
The truth is that investors shouldn't read too much into today's price moves at McEwen Mining. The 1-for-10 reverse split has caused some data processing problems that will get worked out shortly. And the split didn't result in any notable change at the company, other than it now has fewer shares. This is, to some degree, a nonevent.
The only issue worth watching is whether or not the company's effort to remain listed works, since sometimes reverse splits end up being bandages that don't provide a permanent solution. If you own McEwen, you might want to do a little research to make sure you still want to own it. If it eventually gets delisted, selling the shares could become much more difficult.
https://www.fool.com/investing/2022/07/26/why-mcewen-mining-dropped-90-or-did-it-rise-12-tod/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Recent MUX News
- McEwen Mining Q1 2024 Results Conference Call • GlobeNewswire Inc. • 05/06/2024 03:14:03 PM
- McEwen Mining Announces Friendly Acquisition of Timberline Resources • GlobeNewswire Inc. • 04/16/2024 04:31:59 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/01/2024 02:29:09 PM
- McEwen Mining: 2023 Year End and Q4 Results • GlobeNewswire Inc. • 03/01/2024 02:29:28 AM
- McEwen Mining 2023 Results Conference Call • GlobeNewswire Inc. • 02/28/2024 06:57:19 PM
- McEwen Mining: Stock Exploration Update • GlobeNewswire Inc. • 02/28/2024 12:00:00 PM
- McEwen Copper: Update on Assay Results at Los Azules • GlobeNewswire Inc. • 02/26/2024 03:00:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 02/22/2024 09:15:34 PM
- McEwen Copper Reports Improved Copper Recovery • GlobeNewswire Inc. • 02/22/2024 06:24:48 PM
- McEwen Mining: 2023 Production and Guidance for 2024 • GlobeNewswire Inc. • 02/12/2024 09:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/15/2023 09:15:36 PM
- McEwen Mining Closes Flow-Through Financing • GlobeNewswire Inc. • 12/14/2023 05:53:07 PM
- McEwen Mining Appoints a New Director • GlobeNewswire Inc. • 12/13/2023 09:42:37 PM
FEATURED Cannabix Technologies Launches New Compact Breath Logix Workplace Series and Prepares for Delivery to South Africa • May 7, 2024 8:51 AM
Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM