Flux Power stock hits 52-week low at $1.54 amid market challenges

Published 18/02/2025, 16:12
Flux Power stock hits 52-week low at $1.54 amid market challenges

In a challenging market environment, Flux Power Holdings (FLUX) stock has recorded a new 52-week low, touching down at $1.54, representing a stark 73% decline from its 52-week high of $5.74. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value metrics. This price level reflects a significant downturn for the company, which specializes in advanced lithium-ion batteries for industrial applications such as electric forklifts and airport ground support equipment. Over the past year, Flux Power has seen its stock value decrease sharply, with a 1-year change showing a decline of -70.75%. InvestingPro data reveals concerning fundamentals, with the company’s financial health score rated as WEAK, while analysts maintain price targets ranging from $3 to $7. This substantial drop underscores the difficulties the company has faced in a competitive sector that is grappling with supply chain issues and increased market volatility. With revenue of $60.82M and significant cash burn concerns, investors are closely monitoring the company’s performance and potential strategies to rebound from this low point. InvestingPro subscribers have access to 12 additional key insights about FLUX, including detailed analysis of its debt structure and cash flow patterns.

In other recent news, Flux Power Holdings has been grappling with significant developments. The company is facing a Nasdaq delisting over an equity shortfall, with its stockholders’ equity standing at $194,000, falling short of Nasdaq’s minimum requirement of $2.5 million. Flux Power has until mid-March to submit a plan to regain compliance.

Simultaneously, Flux Power has amended its existing loan agreement with Gibraltar Business Capital, modifying the EBITDA Minimum financial covenant. The specifics of the amendment were not detailed, but such adjustments typically relate to financial metrics that the company must maintain to comply with the loan terms.

In addition, the company has announced a change in its independent accounting firm, appointing Haskell & White LLP as the new independent registered public accounting firm for the fiscal year ending June 30, 2025. This transition comes as Flux Power is addressing internal control issues.

Furthermore, Flux Power has appointed Kelly Frey as its new Chief Revenue Officer (CRO), succeeding Tod Kilgore. Frey’s expertise includes building global sales teams, driving revenue growth, and customer-centric strategies.

All these developments are recent and investors are advised to monitor Flux Power’s filings and announcements for the latest updates regarding its compliance status and other changes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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