Akoustis Technologies Facing Delisting from Nasdaq Due to Stock Price Plunge - What Investors Need to Know
Akoustis Technologies, Inc. (NASDAQ:), a leading manufacturer of telephone and telegraph apparatus, is in hot water as Nasdaq has notified the company of potential delisting. The stock failed to meet the minimum bid price requirement, closing below $1.00 for 30 consecutive trading days.
Despite being given an extension to regain compliance, Akoustis received another notice from Nasdaq as the bid price fell to $0.10 or less per share for 10 consecutive trading days. In response, the company plans to appeal the decision and request a hearing before a Nasdaq Hearings Panel.
On a positive note, Akoustis Technologies secured several lucrative orders for its high-band RF filters, indicating strong demand for high-speed internet connectivity. The company reported a 7% revenue increase in Q3 FY2024, reaching $7.5 million.
However, there are concerns for investors to consider. With a market capitalization of just $11.36 million and a low Price / Book multiple of 0.24, Akoustis is facing significant challenges. Analysts predict the company may not be profitable this year, and its history of weak gross profit margins and volatile stock price add to the risks.
Investors looking for undervalued stocks may be drawn to Akoustis, but it's essential to weigh the risks carefully. For a more in-depth analysis, InvestingPro offers additional insights on Akoustis Technologies' financial health and market performance.
In conclusion, Akoustis Technologies' potential delisting from Nasdaq highlights the importance of thorough research and risk assessment when investing in the stock market. Keeping a close eye on the company's financial trajectory and market potential can help investors make informed decisions about their portfolios.