Blacksky announced on September 4, 2024 a 1-for-8 reverse stock split. This reverse split will raise Blacksky stock eight fold, pushing it above $8 dollars. Blacksky stock trades on the NYSE which has a delisting rule for stocks trading below $1. However, at the time of announcement, Blacksky stock was and largely had been trading north of $1. It seems Blacksky management may have initiated this split to protect against delisting should its stock have fallen and prolonged below $1. This may cause suspicion that negative news and performance may be forthcoming and that Blacksky acted to get ahead of this.
Afterward, on September 5th, Blacksky stock dropped 21%. And as of 11:20 PM Japan on September 6th, Blacksky is down another 7%. This is the largest negative movement in over a year. Blacksky posted a $9.4M loss last quarter but reported a cash raise leaving $41M in cash and equivalents. So a financing event does not appear immanent.
Watch closely for negative news or slowed revenue growth.