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Priceline undertakes reverse split

SAN FRANCISCO (CBS.MW) - Priceline.com said it has undertaken a 1-for-6 reverse stock split affecting all outstanding shares

Shareholders are receiving one share of Priceline for each six they previously owned. The stock's ticker symbol has been switched from "PCLN" to "PCLND" (PCLND: news, chart, profile), effective Monday.

As a result of the split, Priceline.com adjusted its earnings targets for the second quarter. Priceline.com said it expects to earn between 12 and 18 cents a share, above the Thomson First Call-compiled earnings estimate of 10 cents a share, also split-adjusted.

The rationale behind the reverse split was to "make our results more comparable to companies that trade with far fewer shares outstanding, and to enable a broader group of investors to participate," said Brian Ek, Priceline.com spokesperson. "Usually, institutions cannot trade a stock that's below $5 a share. Some institutions set that benchmark at $10."

Shares of Priceline recently traded at $24.17, down $1.33, or 5.2 percent. That was off the day's low of $23.55.

On a post-split basis, Priceline.com shares traded above $1,000 in April 1999.