Why Did E-Home Household Service Holdings Drop 13.1%?

On May 28, 2025, E-Home Household Service experienced a significant drop of 13.1% in pre-market trading.
E-Home Household Service Holdings Limited (EJH) recently announced a 1-for-50 share consolidation, which was approved by shareholders on May 1, 2025. This move is part of the company's efforts to streamline its share structure and potentially enhance its market position.
The share consolidation is expected to reduce the number of outstanding shares, which could lead to an increase in the stock price per share. This action is often taken by companies to make their shares more attractive to investors by increasing the price per share and reducing the overall number of shares in circulation.
This consolidation is part of a broader strategy by E-Home Household Service to improve its financial health and operational efficiency. The company has been focusing on cost-cutting measures and enhancing its service offerings to better compete in the household service market.

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