Intelligent Group shares fall 20.46% intraday after announcing 1-for-20 reverse stock split to regain Nasdaq compliance.

Intelligent Group Ltd. fell 20.46% intraday after announcing a 1-for-20 reverse stock split to regain compliance with Nasdaq’s $1.00 minimum price requirement. The move, approved on January 15, 2026, and set to take effect by February 4, 2026, reflects the company’s struggle to maintain listing standards, triggering investor skepticism. Reverse splits often signal financial distress and are typically met with negative market sentiment, as they may indicate a company’s inability to sustain a higher share price. The adjustment reduces the number of outstanding shares but does not inherently improve fundamentals, leading to immediate intraday selling pressure.