Why Did Stem Inc. Stock Soar 15.65%? Reverse Split Boosts Price

Before the BellWednesday, Jun 18, 2025 6:32 am ET
1min read

On June 18, 2025, Stem Inc. saw a significant surge in its stock price, rising by 15.65% in pre-market trading. This substantial increase has drawn attention to the company's recent strategic moves and market dynamics.

Stem Inc. has recently announced a 1-for-20 reverse stock split, which will take effect on June 23, 2025. This move is aimed at boosting the stock price and regaining compliance with the minimum average closing price requirement under the rules of the New York Stock Exchange. The reverse stock split will also halve the company's authorized shares to 250 million, a common strategy used by companies to enhance shareholder value and market perception.

The reverse stock split is expected to impact equity plans and trading dynamics, potentially leading to increased investor interest and market activity. This strategic decision reflects Stem Inc.'s proactive approach to managing its stock performance and ensuring long-term sustainability in the competitive market landscape.