Granite Point Mortgage Shares Fall After Announcing Reverse Stock Split, Strategic Review

Shares of Granite Point Mortgage Trust Inc. (NYSE: GPMT) fell 3.5% in after-hours trading on Wednesday following the company's announcement of a one-for-ten reverse stock split and the initiation of a review of strategic alternatives.

Dual Corporate Actions

Granite Point's Board of Directors approved a 1-for-10 reverse stock split of its common stock, scheduled to take effect at 5:00 p.m. Eastern Time on October 5, 2026. The company stated this action will consolidate every ten issued shares into one, reducing the number of outstanding common shares from approximately 48.2 million to about 4.8 million. The stock will begin trading on a split-adjusted basis at the market open on October 6, 2026, under the same "GPMT" ticker symbol but with a new CUSIP number.

Concurrent with the split, the company disclosed that its board is evaluating a range of strategic alternatives aimed at enhancing stockholder value. According to the announcement, these options could include a business combination, a sale of all or part of the company's assets, or a capital raise. Granite Point cautioned that "there is no assurance the review process will result in any transaction" and has not set a formal timetable for its completion.

Impact on Shareholders

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A reverse stock split is a corporate action that consolidates existing shares to increase the per-share price, though it does not change the company's overall market capitalization. Such moves are often undertaken to regain compliance with exchange listing requirements or to make a stock more attractive to institutional investors who may be prohibited from holding low-priced securities.

The company confirmed several key details for investors:

• Fractional Shares: No fractional shares will be issued. Stockholders will instead receive a cash payment based on the stock's closing price on October 5.
• Common Dividend: The previously announced common stock dividend of $0.01 per pre-split share, payable on October 15, will not be affected.
• Preferred Stock: The action does not apply to the company’s 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock.

The reverse stock split was approved by the board under Maryland General Corporation Law and does not require a vote from stockholders.