In a challenging market environment, Ammo Inc. (NASDAQ:POWW) stock has reached its 52-week low, trading at $0.96. This significant downturn reflects a broader trend for the company, which has seen its stock value decrease by 55% over the past year. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 3.17 and holds more cash than debt on its balance sheet. Investors are closely monitoring the company’s performance, as it navigates through the headwinds that have led to this low point. The current price level represents a critical juncture for Ammo Inc., as market participants consider the company’s future prospects and potential for recovery. While currently unprofitable, InvestingPro data shows analysts expect the company to return to profitability this year, with the stock currently trading below its Fair Value. Discover 10+ additional exclusive insights and detailed analysis available through the Pro Research Report.
In other recent news, Ammo, Inc. has announced that past financial statements from 2021 through 2024 should not be relied upon, as advised by its independent accounting firm, Pannell Kerr Forster of Texas, P.C. This is due to an ongoing internal investigation examining potential inaccuracies in management disclosures, fee characterizations, and stock award valuations. The company has acknowledged a material weakness in its internal control over financial reporting and is taking steps to address these issues.
In the company’s recent fiscal first quarter 2025 report, Ammo, Inc. disclosed a decrease in revenue to approximately $31 million, an adjusted EBITDA of $2 million, and a loss per share of $0.07. The company, however, remains confident in its long-term stability and profitability, focusing on higher-margin rifle and pistol production, and eCommerce innovations.
Roth/MKM has adjusted its price target for Ammo, Inc. to $1.60 from the previous $2.00, maintaining a neutral rating on the stock. Despite ongoing challenges with its cost structure, the company is optimistic about upcoming improvements in ammunition manufacturing. Ammo, Inc. is also preparing for the launch of its new premium rifle hunting segments and anticipates growth in rifle production in the coming quarters of 2025. These are the recent developments for Ammo, Inc.
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