Zepp Health regains NYSE compliance with share price

MILPITAS, Calif. - Zepp Health Corporation (NYSE: ZEPP), known for its smart wearables and health technology, has successfully regained compliance with the New York Stock Exchange's (NYSE) minimum share price requirement for continued listing. The company received confirmation from the NYSE on Wednesday, stating that it now meets the necessary standards after previously falling short.

In late April, Zepp Health was notified by the NYSE that its average closing price had fallen below the $1.00 threshold over a consecutive 30 trading-day period, violating the NYSE Minimum Price Continued Listing Criterion. The recent communication from the NYSE, however, indicates that the company's share price has recovered, and it is no longer at risk of being delisted based on the share price criterion.

Zepp Health, with its consumer brands including Amazfit, Zepp Clarity, and Zepp Aura, operates a global business with a presence in over 90 countries. The company's proprietary Zepp Digital Health Management Platform aims to provide users with actionable insights and guidance, positioning Zepp Health as a significant player in the wearable intelligence and digital health technology sector.

The company's press release includes forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from anticipated outcomes. This includes factors such as partnerships, product recognition, strategies, market trends, and competition, as well as economic conditions and regulatory policies. Zepp Health has stated that it does not intend to update any forward-looking statements unless required by law.

This news is based on a press release statement from Zepp Health Corporation.

In other recent news, Zepp Health Corporation has made notable strides in its financial performance and strategic initiatives. The company has reported a narrowed net loss for the first half of 2024, despite a decline in sales. The company's strategic shift has led to investments in new technologies, such as artificial intelligence, and the planned launch of several products later in the year. Zepp Health achieved a record high gross margin of 40.3% for the quarter, with upcoming product launches including the T-Rex 3 smartwatch and Open Wearable Stereo earbuds.

In addition to its financial performance, Zepp Health is set to adjust the ratio of its American depositary shares to Class A ordinary shares, effectively a one-for-four reverse ADS split. The implementation of this change is anticipated to take place in September 2024. The company also announced the appointment of three new directors to its board, bringing expertise from finance and technology sectors.

Despite a decrease in sales, the company maintains a strong cash position of $129 million and has retired $55.2 million of debt. Operating costs have decreased, with research and development expenses down by 13.8% year over year. Zepp Health projects Q3 2024 revenue to be between $45 million and $60 million, with new product gross margins expected to be over 45% to 50%. These recent developments reflect Zepp Health's ongoing strategic transformation.

InvestingPro Insights

Zepp Health Corporation's recent compliance with NYSE listing requirements comes amid a period of significant stock price volatility and financial challenges. According to InvestingPro data, the company has experienced a strong return over the last three months, with a 56.85% price total return. This recent performance aligns with the company's successful efforts to meet the NYSE's minimum share price requirement.

Despite the recent uptick, Zepp Health faces some financial headwinds. An InvestingPro Tip indicates that analysts anticipate a sales decline in the current year, which is supported by the company's revenue growth of -93.36% over the last twelve months. Additionally, the company is not currently profitable, with a negative operating income of -21.82 million USD for the same period.

However, Zepp Health's stock appears to be trading at a low valuation relative to its book value, with a Price / Book ratio of 0.18. This could potentially present an opportunity for investors who believe in the company's long-term prospects in the wearable intelligence and digital health technology sector.

For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Zepp Health, providing a more comprehensive view of the company's financial situation and market position.

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