Has Workhorse stock regained Nasdaq compliance?
Workhorse Group (NASDAQ: WKHS) is in focus this morning after it started trading on a split-adjusted basis.
Workhorse stock is losing after the stock split
Last week, the electric vehicles company announced a reverse stock split (1-for-20) to regain compliance with requirements to remain listed on Nasdaq.
$WKHS must trade at a price of over $1.0 per share for ten consecutive days to satisfy the minimum bid rule. It has until September 16th to establish compliance with the aforementioned requirement.
The stock split does not guarantee that Workhorse stock will remain listed on Nasdaq considering it’s seeing a sharp sell-off today.
Shares of the Ohio based company opened at $3.0 on a split adjusted basis on Monday but have already tanked to $2.30 as of writing.
If they continue to fall, they might end up under $1.0 and be deficient again in satisfying the minimum bid rule which has happened to several names in the past that opted for a reverse stock split to regain Nasdaq compliance such as Naked Brand.
Workhorse Group currently has a market cap of well under $1 billion.
Are Workhorse shares worth owning in 2024?
Investors should be wary of considering Workhorse stock at present considering it’s basically a penny stock which makes it vulnerable to manipulation.
Note that a continued hit to $WKHS is justified considering its recent financial performance. In May, the EV firm reported 10 cents a share of loss for its first quarter – wider than 8 cents per share that analysts had forecast.
Workhorse Group also saw its revenue decline from $1.69 million to $1.34 million in Q1 that fell short of experts’ forecast by a wide margin as well. Still, Rick Dauch – its chief executive said at the time:
Our successful W56 demonstrations continue to affirm strong market potential of our commercial EV trucks. This April, we celebrated a substantial order for our W4 CC trucks and expanded our dealer network to include new locations in New York and a set of dealership locations across the upper Midwest region.
Earlier in June, Michael Shlisky of D.A. Davidson reiterated his “hold” rating on Workhorse stock with a price target of 50 cents ($10 on a post stock split basis). $WKHS does not currently pay a dividend.
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