Theriva Biologics Inc ( TOVX ) shares are trading lower by 15% to $0.17 Monday morning after the company announced a 1-for-25 reverse stock split.

This reverse stock split will become effective on August 26. The company’s common stock will begin trading on a split-adjusted basis when the market opens on that day.

The reverse stock split was authorized by the company’s Board of Directors on August 15. As a result of this reverse split, the number of outstanding common shares will decrease significantly from 25,131,230 to 1,005,249, not accounting for fractional shares.

The purpose of this reverse stock split is to help ensure that the company meets the per-share price requirements of the NYSE American.

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Should I Sell My TOVX 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.

Shares of Theriva Biologics ( TOVX ) have lost 61.44% year to date. This compares to the average annual return of -64.04%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

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TOVX has a 52-week high of $0.68 and a 52-week low of $0.18.