Beasley Broadcast Group Inc. (NASDAQ: BBGI) Implements 1-for-20 Reverse Stock Split
Beasley Broadcast Group Inc. (NASDAQ: BBGI) has officially enacted a 1-for-20 reverse stock split of its Class A and Class B common stock, effective immediately. This strategic move aims to increase the per-share trading price of the company's common stock and potentially regain compliance with Nasdaq's minimum bid price requirement.
The reverse stock split means that for every 20 shares of Beasley Broadcast Group's common stock held by a shareholder, they will now own a single share. No fractional shares will be issued, and shareholders will receive cash payments for any resulting fractional shares based on the closing sales price of the Class A Common Stock on the Nasdaq on the effective date.
Trading of the company's Class A common stock will continue on the Nasdaq under the ticker symbol BBGI on a reverse stock split-adjusted basis. The stock will trade under a new CUSIP number, 074014 200, post-split.
Beasley Broadcast Group, headquartered in Naples, Florida, operates radio stations across the United States. This move is part of the company's efforts to manage its capital structure and enhance shareholder value.
In terms of recent financial results, Beasley Broadcast Group reported mixed earnings for the second quarter of 2024. While total revenue declined by 4.8% and same-station revenue decreased by 2%, digital revenue increased by 10.2%, accounting for 21.5% of total revenue. Adjusted EBITDA also rose by 11.4% to $8.8 million.
As investors navigate through this reverse stock split, it's important to consider InvestingPro insights. BBGI has a market capitalization of approximately $14.58 million and is trading at a low Price / Book multiple of 0.1, indicating potential undervaluation. However, the company operates with a significant debt burden and has been burning through cash quickly, raising concerns about its long-term financial stability.
According to InvestingPro, the Fair Value estimate for Beasley Broadcast Group is $0.62, suggesting a potential upside from the previous close price of $0.49. These metrics and tips can be valuable for making informed investment decisions.
Overall, Beasley Broadcast Group's reverse stock split and financial performance offer insights into the company's current position and potential risks for investors to consider.