The initial Tuesday drop was not accompanied by a news release or Wall Street report, although CFRA analyst Garrett Nelson, on Tuesday, adjusted his price target to $10 a share from $1 to account for the split. Traders sometimes see reverse stock splits as a sign that a share price will fall further, just as they see traditional stock splits as a source of upside. Traditional stock splits are supposed to signal to investors that management sees additional gains in the future, which might be true, but splits are pretty standard for most businesses.
