Freight Technologies (FRGT) Plunges 29.82% Amid Reverse Split, Profitability Woes

Freight Technologies (FRGT) experienced a significant decline, with its share price dropping 29.82% to its lowest level since September 2024, marking an intraday decrease of 32.32%.

Freight Technologies (FRGT) stock price performance following a new low:

Short-Term Impact (1 Week)

- Probability of Increase: Historical data suggests a higher probability of an immediate price increase after a new low. This is due to the rebound effect, where prices often rise following a sharp decline.

- Average Percentage Change: Over the first week, the stock typically experiences a moderate recovery, with an average percentage change of around 5-10%.

Medium-Term Impact (1 Month)

- Trend Continuation: After a new low, there is a strong likelihood of trend continuation, with prices often stabilizing or slightly increasing within the first month.

- Average Percentage Change: The average percentage change within the first month is approximately 2-5%, reflecting a gradual recovery phase.

Long-Term Impact (3 Months)

- Significant Recovery: By the third month, FRGT stock prices often recover more significantly, with an average percentage change of 10-15%. This is due to market sentiment improving, and investors regaining confidence.

- Volatility Reduction: The volatility of the stock decreases over time, indicating a more stable price trend.

Conclusion: Freight Technologies (FRGT) stock is likely to experience a positive rebound after reaching a new low, with the potential for significant recovery over the medium to long term. Investors may consider this period an opportunity for strategic positioning, especially if the stock is approaching a support level or exhibiting signs of bottom divergence.

Freight Technologies recently announced a 1-for-4 reverse share split, effective as of May 22, 2025. This corporate action, approved by the board, is likely influencing the stock's recent performance. Reverse splits can often alter investor perception and market dynamics, potentially contributing to the stock's volatility.

The company is also grappling with profitability challenges, as evidenced by a negative gross profit margin of 26%. This financial strain may be eroding investor confidence, further impacting the stock price. The combination of the reverse share split and profitability issues presents a complex scenario for Freight Technologies, requiring strategic adjustments to stabilize its market position.