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NATICK, Mass. - Allurion Technologies, Inc. (NYSE:ALUR), a medical technology company focused on obesity treatment, has been notified by the New York Stock Exchange (NYSE) of non-compliance with the exchange's minimum share price requirement. The company's stock has averaged below $1.00 over a recent 30-day trading period, which concluded on August 8, 2024.
The notice received by Allurion does not immediately affect the company's listing on the NYSE. Allurion has expressed its intention to remedy the deficiency within the allotted six-month cure period. To regain compliance, the company's closing share price and its 30-day trading average must both meet or exceed $1.00 on the last trading day of any calendar month during this period.
Allurion is considering various strategies to address the issue, including the possibility of a reverse stock split, pending shareholder approval. If such measures require shareholder consent, the NYSE allows for an extension of the cure period, provided the plan is approved at the company's next annual stockholder meeting and promptly executed.
During the cure period, Allurion's stock will continue to trade on the NYSE, and the company must maintain compliance with other continued listing standards. The notice is not expected to have an immediate impact on Allurion's business operations or its SEC reporting obligations.
The information in this article is based on a press release statement from Allurion Technologies, Inc.
In other recent news, Allurion Technologies reported a significant increase in its second-quarter revenue, marking a 25% rise to $11.8 million. Despite regulatory challenges in France and macroeconomic headwinds in Latin America and Asia Pacific, Allurion is optimistic about achieving profitability by the end of 2025. The company also welcomed Ojas A. Buch as the new Chief Operating Officer and is advancing its digital offerings, including an AI-powered weight loss coach and a virtual care suite.
Allurion recently suspended sales in France due to regulatory issues but is actively working on a remediation plan. The company is also exploring partnerships with pharmacies and healthcare providers, enhancing its digital platform and AI technology. These are among the recent developments for Allurion, which is focused on top line revenue growth and bottom line profitability in the coming year.
InvestingPro Insights
As Allurion Technologies, Inc. (NYSE:ALUR) navigates the challenges of meeting the NYSE's minimum share price requirement, a closer look at the company's financial health and market performance provides a clearer picture of its current situation. According to InvestingPro data, Allurion has a market capitalization of $45.25 million and has experienced a significant revenue decline of 23.59% over the last twelve months as of Q2 2024. This downward trend is also reflected in the company's stock performance, with a 30.62% decline in the one-month price total return and a staggering 76.87% drop in the one-year price total return as of the same period.
Despite these challenges, Allurion boasts an impressive gross profit margin of 76.19%, highlighting the company's ability to maintain profitability on its products or services. However, with a negative P/E ratio of -0.82, investors may be concerned about the company's earnings relative to its share price. This is compounded by the fact that the stock is trading near its 52-week low, at only 10.5% of its 52-week high, indicating a significant decrease in investor confidence.
InvestingPro Tips for Allurion suggest that the company operates with a significant debt burden and may struggle to make interest payments on its debt. This financial strain is evident in the company's rapid cash burn, a concern for both the company and potential investors. Additionally, analysts do not anticipate Allurion will be profitable this year, which is a critical consideration for those evaluating the stock's future prospects.
For investors seeking a more in-depth analysis of Allurion Technologies, there are additional InvestingPro Tips available. These include insights on the company's valuation, liquidity, and analyst expectations for sales and profitability. To explore these further, interested parties can visit InvestingPro for a comprehensive set of 17 additional tips that provide a detailed outlook on Allurion's financial and market position.
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