Allbirds Inc (NASDAQ:BIRD) shares are trading lower by 4.4% to 68 cents during Friday's session after the company announced it will implement a 1-for-20 reverse stock split of its Class A and Class B Common Stock, following approval from its Board of Directors and stockholders.

The split, intended to help the company meet Nasdaq's minimum bid price requirement, will take effect on September 4, 2024, with the stock trading on a split-adjusted basis starting September 5.

The reverse stock split will combine every 20 shares of Allbirds' Common Stock into 1 share, with stockholders retaining the same ownership percentage post-split. No fractional shares will be issued; instead, stockholders will receive cash payments for any fractional shares.

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Should I Sell My BIRD Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Allbirds have decreased by 47.98% in the past year. An investor who bought shares of Allbirds at the beginning of the year would take a loss of $0.62 per share if they sold it today. The stock has risen 9.11% over the past month, meaning an investor who bought shares on Jul. 1 would see a capital gain of $0.2.

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According to data from Benzinga Pro, BIRD has a 52-week high of $1.46 and a 52-week low of $0.45.