PGIM ETF risks delisting over low shareholder count

Published 02/04/2025, 21:56
PGIM ETF risks delisting over low shareholder count

PGIM ETF Trust, the investment management company based in Newark, NJ, has received a notice from Cboe BZX Exchange, Inc. regarding a potential delisting of one of its exchange-traded funds (ETFs), the PGIM Jennison Focused Mid-Cap ETF (Cboe:BZX PJFM). The fund, currently trading at $56.01 with a market capitalization of $13.21 million, has seen its value decline 4.89% year-to-date. On Monday, the Trust was informed that the Fund does not meet the requirement of having a minimum of 50 beneficial holders, as per Cboe’s Exchange Rule 14.11(l)(4)(B)(i)(c).

The rule stipulates that an ETF must maintain at least 50 beneficial holders for 30 consecutive trading days following a year of trading on the exchange. The PGIM Jennison Focused Mid-Cap ETF, which began trading on December 19, 2023, has been found to have fewer than the required number of beneficial holders on multiple dates, including December 30, 2024, January 29, 2025, and March 3, 2025.

PGIM ETF Trust plans to respond to the notice within the 45-day window provided, presenting a plan to regain compliance with the Cboe’s continued listing standards. If the Trust’s plan is not accepted, or if the Fund does not reach the 50 beneficial holder threshold during any extension period granted by Cboe, the Fund may face delisting from the exchange.

This development comes as a forward-looking statement within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, indicating potential future events that could affect the Trust’s financial performance and market standing. The Trust has emphasized that actual results could significantly differ due to various risks and uncertainties, including the ability to meet the Cboe’s listing standards and avoid delisting.

The Trust has made it clear that it will update the public as required by law, but it has no current obligation to revise these forward-looking statements. This information is based on a press release statement from PGIM ETF Trust. According to InvestingPro analysis, the fund currently faces challenges with weak gross profit margins and poor free cash flow yield. For deeper insights into the fund’s financial health and additional expert tips, investors can access comprehensive analysis through InvestingPro, which offers detailed metrics and professional guidance for informed investment decisions.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.