Image Source: © Bluebay2014 | Megapixl.com
- The CMCM stock soared more than 69 per cent on Friday.
- Its ratio change in its ADS became effective today.
- Cheetah Mobile's trading volume was more than 1.80 million on Friday morning.
The Cheetah Mobile Inc. (NYSE: CMCM) stock caught the attention of the stock market enthusiasts on Friday, September 2, and its price soared during the morning trading.
The CMCM stock climbed up more than 69 per cent on Friday after its ADS ratio change became effective today.
Many investors might be looking for details that may have triggered its price today. Let's find out the reason with Kalkine Media® before looking at the other information about the mobile internet company and its stock.
The Beijing, China-based mobile internet firm had said on August 23 that its American Depositary Share (ADS) would be converted to Class A ordinary share.
Initially, the ratio was split as ten shares represented by one ADS of the firm, but according to the announcement, the new split would be 50 shares for one ADS. The ratio change in its ADS became effective on September 2.
The conversion will be like a one-for-five reverse ADS split for holders of the CMCM ADS. Meanwhile, the ADS holders of Cheetah Mobile will have to surrender their old ADS to cancel them.
As per the change, the holders will get one new ADS in exchange for five old ADSs.
However, holders in the Direct Registration System and Depository Trust Company would have their ADSs exchanged automatically without taking any action. Notably, only whole ADSs are distributed, the firm said.
The ratio change will likely not affect the underlying ordinary shares of the mobile internet firm.
The price of the CMCM stock was US$ 5.68 at 9:52 am ET on September 2, an increase of 69.6 per cent from its previous close of US$ 3.349. Meanwhile, its trading volume at the time of drafting was over 1.83 million.
The revenue of the US$ 799.78 million market cap company was RMB 784.61 million or US$ 123.12 million in fiscal 2021, comparatively lower than the revenue of RMB 1.55 billion in the preceding year. Its net loss totalled RMB 353.20 million or US$ 55.42 million in fiscal 2021, compared to an income of RMB 411.15 million in fiscal 2020.
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use on