Citigroup (C) Reverse Stock Split Volume Running Better Than Expected, Dollar Volume Could Rise
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Shares of Citigroup (NYSE: C) have traded 13.5 million shares through the first hour of trading. If this pattern holds for the remainder of the session, the stock would trade about 90 million shares for the full session.
This would be more than twice as much as 40 million shares some were predicting based on 10% of the normal 400 million shares after the 1-for-10 reverse stock split.
Interestingly, if the volume holds the dollar volume would be substantially higher than normal. If Citigroup trades 90 million shares at an average price of $44.50 that would equal dollar volume of $4 billion. That would be more than double the $1.8 billion if shares were trading at $4.45 per share at the pre-split volume of 400 million.
Of course one day does not a pattern make and the beginning of the day volume could be much higher than the mid-day volume. Nonetheless, trading volume at this time looks better-than-expected.
High frequency traders will likely be studying the volume and price action in Citigroup carefully to identify patterns at the new price level.
Shares of Citigroup are down 2.3 percent from Friday’s split-adjusted price of $45.20.
This would be more than twice as much as 40 million shares some were predicting based on 10% of the normal 400 million shares after the 1-for-10 reverse stock split.
Interestingly, if the volume holds the dollar volume would be substantially higher than normal. If Citigroup trades 90 million shares at an average price of $44.50 that would equal dollar volume of $4 billion. That would be more than double the $1.8 billion if shares were trading at $4.45 per share at the pre-split volume of 400 million.
Of course one day does not a pattern make and the beginning of the day volume could be much higher than the mid-day volume. Nonetheless, trading volume at this time looks better-than-expected.
High frequency traders will likely be studying the volume and price action in Citigroup carefully to identify patterns at the new price level.
Shares of Citigroup are down 2.3 percent from Friday’s split-adjusted price of $45.20.
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