CINCINNATI - Workhorse Group Inc. (NASDAQ:WKHS), an American company specializing in zero-emission commercial vehicles, has announced its return to compliance with Nasdaq's minimum bid price requirement. Nasdaq confirmed that Workhorse's common stock has maintained a closing bid price of at least $1.00 per share for ten consecutive trading days, meeting the criteria set forth by Listing Rule 5550(a)(2).
The company had previously been notified by Nasdaq on September 22, 2023, that its stock price fell below the required minimum for continued listing. In response, Workhorse was granted a 180-day extension on March 21, 2024, to regain compliance.
To address the issue, Workhorse executed a 1-for-20 reverse stock split on June 17, 2024. This strategic move effectively raised the market price of its common stock, allowing it to satisfy the Nasdaq's minimum bid price condition.
Workhorse's core business involves designing and manufacturing high-performance, battery-electric trucks and drones. The company also offers cloud-based, real-time telematics performance monitoring systems that integrate with their vehicles, aiming to enhance energy and route efficiency for fleet operators. Workhorse's commitment to innovation in the electric vehicle space is part of a larger effort to make the transportation of goods more environmentally friendly and efficient.
While the company's recent compliance achievement is a positive step, Workhorse has faced challenges, including the need to develop and manufacture new product portfolios, attract and retain customers, and manage supply chain disruptions.
Moreover, the company's financial health has been a concern, requiring careful management of liquidity and capital resources. The forward-looking statements in the press release reflect the company's ambitions and plans but are subject to various risks and uncertainties that could impact future results.
The information in this article is based on a press release statement from Workhorse Group Inc.
InvestingPro Insights
As Workhorse Group Inc. (NASDAQ:WKHS) navigates its path to recovery and compliance with Nasdaq's listing requirements, the company's financial health and market performance remain under the investor's microscope.
According to InvestingPro data, Workhorse exhibits a significant revenue growth of 90.1% over the last twelve months as of Q1 2024, indicating a potential turnaround in sales. However, this growth is juxtaposed with a quarterly revenue decline of 20.91% in Q1 2024, reflecting the volatility and challenges in sustaining positive financial momentum.
The company's market capitalization currently stands at a modest 25.8 million USD, with a notably low Price / Book ratio of 0.38 as of the last twelve months ending Q1 2024, suggesting that the stock might be undervalued relative to its book value. Despite this, Workhorse's gross profit margin paints a concerning picture with a negative value of -217.61%, highlighting the company's difficulty in translating sales into profitability.
Investors seeking deeper insights into Workhorse's financials and future outlook may find value in the InvestingPro Tips. Analysts have revised their earnings upwards for the upcoming period, hinting at a potential improvement in the company's financial performance. Additionally, the stock is currently in oversold territory according to the Relative Strength Index (RSI), which could signal a buying opportunity for contrarian investors.
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