Stryker shares tumble despite strong Q2 results and raised guidance
Today, Nikola (NASDAQ:NKLA) Corporation, a player in the motor vehicle and passenger car bodies industry, announced that it has received a Compliance Notice from The Nasdaq Stock Market LLC confirming the company's return to compliance with Nasdaq's minimum bid price requirement. The notice, dated July 10, 2024, indicates that Nikola's common stock maintained a closing bid price of at least $1.00 per share from June 25, 2024, through the date of the notice.
The Nasdaq Global Select Market requires listed companies to maintain a minimum bid price of $1.00 per share, and Nikola's ability to meet this standard has resolved the issue, leading to the closure of the matter. This development follows a period during which Nikola's stock price had fallen below the required threshold, putting the company at risk of delisting.
Nikola Corp , headquartered in Phoenix, Arizona, and incorporated in Delaware, operates under the IRS Employer Identification Number 82-4151153 and is listed on the Nasdaq under the ticker symbol NASDAQ:NKLA. The company's compliance with the Nasdaq Listing Rule 5450(a)(1) is a critical step in maintaining its listing on the exchange.
In other recent news, Nikola Corporation has set a date for its Q2 2024 results and an interactive Q&A. The company has exceeded second-quarter delivery expectations, handing over 72 fuel-cell electric vehicles, surpassing its guidance of 50 to 60 units. Despite this, Baird has reduced the shares target for Nikola to $14, while maintaining an Outperform rating. Nikola also announced a 1-for-30 reverse stock split, aimed at enhancing the corporate structure.
The company secured a significant order of 100 hydrogen fuel cell electric trucks from AiLO Logistics. Additionally, Nikola has expanded its hydrogen refueling station network with a new facility in Long Beach, California, under its HYLA brand. These are the recent developments in the company, providing investors with an overview of its recent performance and future plans.
InvestingPro Insights
In light of Nikola Corporation's recent compliance with Nasdaq's minimum bid price requirement, it's worth noting some additional insights from InvestingPro. The company holds a key financial advantage by having more cash than debt on its balance sheet, which can be a positive indicator of financial stability. Furthermore, analysts are expecting sales growth in the current year, which may bode well for the company's future performance.
However, it's not all smooth sailing for Nikola. The firm is rapidly burning through its cash reserves, and analysts do not anticipate the company will turn a profit this year. Additionally, the stock has experienced significant volatility, with a notable return over the last week but poor performance over the last month, three months, and year.
From a valuation standpoint, Nikola's market cap stands at $431 million, with a very low price-to-book ratio of 0.73 as of the last twelve months leading up to Q1 2024. This could suggest that the stock is undervalued relative to its assets. On the flip side, the company's revenue has decreased by 44.19% over the same period, highlighting challenges in its growth trajectory.
For investors interested in deeper analysis and additional InvestingPro Tips, such as the implications of Nikola's high revenue valuation multiple or its weak gross profit margins, InvestingPro offers further guidance. There are 19 more tips available on Nikola, which can be accessed by visiting: https://www.investing.com/pro/NKLA. To benefit from these insights, use the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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