Shares of HUB Cyber Security Ltd. (NASDAQ:HUBC) are plummeting on Tuesday as traders react sharply to the company’s 1-for-20 reverse stock split, which became effective on Friday.
Under the new structure, the Tel Aviv-based cybersecurity company started trading on a split-adjusted basis at the open of business on Monday.
The split automatically converted every 20 issued and outstanding ordinary shares into one single share, reducing the outstanding count from 66,603,152 to 3,330,157 shares.
Nasdaq Compliance Battle
The company expects the reverse share split to increase the per share trading price of the Ordinary Shares and enable HUB to maintain compliance with the minimum bid price requirement in Nasdaq Listing Rule.
Market data highlights a dramatic rise in bearish bets against the developer of confidential computing and secured data fabric technologies. Short interest surged during the last reporting period, leaping from 327,370 shares to 1.22 million shares.
This sudden influx puts 94.86% of the company’s publicly available float short. Based on a recent average daily trading volume of 39.24 million shares, data indicates short sellers would require only 1 day to fully close out positions.
HUBC Stock: Critical Levels To Watch
From a trend perspective, HUBC is still deeply bearish: it’s trading about 67% below its 20-day simple moving average ($4.14) and roughly 97% below its 50-day simple moving average ($48.99).
The bigger-picture damage is hard to ignore: the stock is down 100% over the last 12 months and is sitting below its 52-week low of $1.64.
- Key Resistance: $1.64 — prior 52-week low zone that can turn into overhead resistance after a breakdown
- Key Support: $1.36 — current price area where buyers are trying to defend the tape today
HUBC Stock Price Activity: Hub Cyber Security shares were down 25% at $1.32 at the time of publication on Tuesday, according to Benzinga Pro data.
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