Cyngn Inc (NASDAQ:CYN) shares are trading lower by 29% to $0.05 during Tuesday's session after the company announced a 1-for-100 reverse stock split.

This split will be effective at 5 p.m. ET on July 3, and trading on a post-split basis will begin on July 5. The primary goal is to increase the share price to meet Nasdaq's minimum bid price requirement.

Post-split, every 100 shares will convert to 1 share, with no fractional shares issued—fractional shares will be rounded up. Equity awards and warrants will also be proportionately adjusted.

Read Also: Tesla Deliveries Fall For Second Straight Quarter, But Stock Takes Off As Q2 Numbers Exceed Expectations

Should I Sell My CYN Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Cyngn stock currently has an RSI of 41.71, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

CYN has a 52-week high of $1.21 and a 52-week low of $0.05.