SAN FRANCISCO - Allbirds, Inc. (NASDAQ: BIRD (LON:BIRD)), known for its eco-friendly footwear and apparel, has been notified by the Nasdaq Stock Market that it is currently not in compliance with the exchange's minimum bid price rule. The company’s Class A common stock has been trading below the $1.00 minimum required bid price for 30 consecutive business days as of April 2, 2024.
Despite this notice, Allbirds' stock will remain listed on the Nasdaq, provided it meets other continued listing standards. The company's operations are not directly impacted by this development.
To regain compliance, Allbirds has a 180-day period, until September 30, 2024, to elevate its bid price to at least $1.00 for a minimum of 10 consecutive business days. Should Allbirds fail to achieve compliance within this timeframe, it may be granted an additional 180 days to meet the requirement.
Allbirds has stated its intention to closely monitor its stock's bid price and is considering possible actions to respond to the Nasdaq's notification to regain compliance, though no specific strategies have been disclosed as of yet.
Founded in San Francisco with New Zealand origins, Allbirds launched in 2016 with the Wool Runner shoe and has since sold millions of pairs. The company emphasizes the use of sustainable materials such as SweetFoam™ made from sugarcane, and textiles derived from eucalyptus fibers and Merino wool, aiming to offer quality products without compromising environmental impact.
This announcement is based on a press release statement from Allbirds, Inc.
InvestingPro Insights
As Allbirds, Inc. (NASDAQ: BIRD) faces challenges with the Nasdaq's minimum bid price rule, investors are taking a closer look at the company's financial health and market performance. According to InvestingPro data, Allbirds has a market capitalization of approximately $100.94 million, reflecting the market's current valuation of the company.
Despite a challenging sales environment, as indicated by a revenue decline of 14.68% over the last twelve months as of Q1 2023, the company maintains a notable gross profit margin of 41.03%, suggesting some resilience in its business model.
The stock's price volatility is also a key consideration, with Allbirds trading at a significant discount to its 52-week high, currently at 35.54% of that peak value. This may present a mixed picture for investors, as the company's stock price performance has shown considerable weakness, with a 25.59% decline over the last month and a 41.93% drop over the last three months.
Looking at InvestingPro Tips, Allbirds holds more cash than debt on its balance sheet, which could provide some financial flexibility in navigating market conditions. Additionally, the company's liquid assets exceed its short-term obligations, offering a degree of short-term financial stability. However, analysts do not anticipate the company will be profitable this year, and the stock has been trading with high price volatility, which could be a concern for risk-averse investors.
For readers seeking a deeper analysis and more InvestingPro Tips, Allbirds currently has 18 additional tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/BIRD. For those interested in an InvestingPro subscription, be sure to use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.