Stock Splits Scheduled for This Week (September 2 to September 5) – Keep Your Investments Active
Upcoming Stock Splits (September 2 - September 5)
- Overview of Stock Splits: Stock splits are a common practice in the financial market where companies increase the number of shares available without altering the overall market value. This typically results in a lower share price, making stocks more accessible to retail investors. Conversely, reverse stock splits consolidate shares, increasing the price per share to meet listing requirements or avoid delisting.
Companies Announcing Stock Splits
MSP Recovery (MSPR): Operating as LifeWallet, MSP Recovery announced a 1-for-7 reverse stock split effective September 1, aimed at increasing its share price to comply with Nasdaq’s $1.00 minimum bid rule after facing pressure for several months.
PMGC Holdings (ELAB): This diversified holding company revealed a 1-for-3.5 reverse stock split effective September 2, intended to enhance market stability and attract more investors.
FiscalNote Holdings (NOTE): The company, which provides AI-driven data platforms, executed a 1-for-12 reverse stock split on August 29 to align its stock price with NYSE listing standards after trading below $1 for an extended period.
TNF Pharmaceuticals (TNFA): A clinical-stage biotech firm, TNF Pharmaceuticals approved a 1-for-100 reverse stock split to improve its share structure and comply with Nasdaq’s minimum bid rule, effective September 2.
Lucid Group (LCID): Known for its luxury electric vehicles, Lucid Group announced a 1-for-10 reverse stock split effective August 29, aimed at boosting its share price and maintaining compliance with Nasdaq listing standards.
CNFinance Holdings (CNF): This Chinese financial services provider will implement a 1-for-10 reverse ADS split, changing its ADS ratio from 1:20 to 1:200 Class A shares, effective September 5, to enhance its per-share price and uphold its NYSE listing.
Conclusion
- Market Implications: These stock splits and reverse splits are strategic moves by companies to either attract new investors or ensure compliance with exchange listing requirements, reflecting their ongoing efforts to stabilize and enhance market perception. For further details on historical and upcoming stock splits, the TipRanks Stock Splits Calendar can be consulted.
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Analyst Views on LCID
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- Market Potential and Valuation Gap: Lucid Group's market cap stands at approximately $2.7 billion, while Rivian is valued at nearly $20 billion and Tesla exceeds $1 trillion, indicating significant upside potential for Lucid; however, its stock has plummeted by about two-thirds over the past year, exacerbating this valuation disparity.
- Lack of Profitability: Since going public in 2021, Lucid has never posted a profit or achieved positive gross margins, leading to waning market confidence in its future profitability, particularly as competition intensifies in the electric vehicle sector.
- Delayed New Model Launches: Lucid aims to produce a mid-sized model at its Saudi facility by the end of 2026, with two additional affordable models planned for 2028 and 2030, yet the scarcity of details raises uncertainty that could impact its market performance and investor confidence.
- Capital-Intensive Challenges: The electric vehicle industry demands substantial capital investment with long return cycles; Lucid's investors, including Uber and Saudi Arabia's sovereign wealth fund, have motives beyond mere financial gain, adding further challenges to Lucid's financing and market confidence.
- Market Potential and Valuation Gap: Lucid Group's current market cap of approximately $2.7 billion is significantly lower than Rivian's $20 billion and Tesla's over $1 trillion, indicating potential long-term growth while also reflecting investor skepticism about its future profitability.
- Reasons for Stock Decline: Over the past year, Lucid's stock has fallen by about 66%, primarily due to the company failing to post profits since going public in 2021, with consistently negative gross margins leading to diminished market confidence in its profitability outlook.
- Urgency for Affordable Models: Lucid's management plans to produce a mid-sized model at its Saudi Arabia facility by the end of 2026, with two additional affordable models expected in 2028 and 2030, but the lack of specific details raises doubts about its ability to deliver on these promises.
- Investor Confidence and Capital Needs: Although Lucid has secured funding from investors like Uber and Saudi Arabia's sovereign wealth fund, these backers have motives beyond mere financial returns, with Uber aiming to enhance its supply chain for autonomous vehicles and Saudi Arabia pursuing internal economic and power signaling interests.
- Inclusion in Nasdaq-100: Sandisk is set to join the Nasdaq-100 on April 20, 2025, replacing Atlassian, which underscores its strong demand in the data storage solutions sector, despite Wall Street's general view of overvaluation.
- Stock Performance and Analysis: The stock has surged over 2,700% in the past year, currently priced at $921, with analysts' median target price at $843, indicating an 8% downside risk; however, some analysts project a potential rise to $2,600, suggesting a 182% upside.
- Market Share Growth: Sandisk gained 2 percentage points in the NAND flash market over the past year, ranking fourth, yet outpacing industry leader Samsung, highlighting its competitiveness amid soaring AI data center demand.
- Strong Financial Performance: In Q1 2023, Sandisk's sales jumped 61% to $3 billion, with non-GAAP earnings soaring 404% to $6.20 per share; while future supply-demand imbalances pose risks, the current growth momentum renders its valuation reasonable.
- Stock Surge: Sandisk's stock has surged 2,700% over the past year, primarily driven by strong demand for its data center storage solutions, and its upcoming inclusion in the Nasdaq-100 is expected to further boost its stock price.
- Market Share Growth: Although Sandisk ranks fourth in the NAND flash market, it gained 2 percentage points of market share over the past year, indicating its increasing competitiveness amid surging AI data center demand.
- Strong Financial Performance: In the January quarter of 2023, Sandisk's sales jumped 61% to $3 billion, while non-GAAP adjusted earnings soared 404% to $6.20 per share, reflecting the company's profitability in a rapidly growing market.
- Future Risks: Despite the current supply shortage driving price increases, analysts warn that increased production capacity may lead to a supply glut in the future, potentially causing NAND prices to fall significantly, prompting investors to approach the stock's high valuation with caution.
- New Model Development: Tesla is developing an all-new, smaller, and more affordable electric SUV, which is expected to differ from the existing Model Y and could play a significant role in future autonomous driving strategies.
- Production Location Speculation: Sources indicate that the SUV may be produced in China, leveraging the country's advanced electric vehicle technology, which would provide Tesla with a significant competitive advantage in the market.
- Pricing Strategy: Tesla plans to price the new SUV below its entry-level Model 3, which starts at $34,000 in China, potentially attracting more consumers and expanding its market share.
- Market Competition Pressure: While Tesla focuses on the future of autonomous driving and robotics, it faces increasing pressure from traditional models, particularly from Chinese EV manufacturers, which may accelerate the launch of the new model.
- New Model Development: Tesla is in discussions with suppliers about an all-new smaller electric SUV, which is expected to bridge the gap between its aging lineup and future driverless technology, with potential production in China to leverage the rapid growth of the local EV market.
- Market Positioning: The new SUV is targeted to be priced significantly lower than Tesla's entry-level Model 3, which starts at $34,000 in China, aiming to attract more consumers and enhance market competitiveness.
- Production Location Impact: If the new model is produced in China, Tesla could better align with advancements in Chinese electric vehicle technology, potentially providing a significant competitive edge in a market where rivals like Rivian and Lucid have yet to enter.
- Strategic Return: The development of this new model may signify Tesla's return to its automotive roots, focusing on traditional vehicle production alongside its ambitions in driverless technology and humanoid robots, helping it navigate increasing market competition.











