Despite a late-session rally, Audacy shares declined for the second-straight session, putting new scrutiny on a glowing seal of approval on the company formerly known as Entercom from a key Wall Street investor blog.
On average volume, AUD finished Wednesday (4/21) at $4.63, down 5.1% from Monday, a day when shares also saw a significant dip in value.
The decline puts AUD at a place it’s not seen yet — technically.
While still training under former Entercom ticker symbol ETM, shares in late February dipped to $4.47 before rebounding. By March 16, a $6.22 closing price was seen.
Now, Audacy shares are back where Entercom was in late January.
Audacy’s latest Wall Street sign of a struggle is magnified by a sign of approval from respected Wall Street blog Simply Wall Street, which on April 12 declared that the company “is possibly approaching a major achievement in its business.”
It asks when Audacy will hit its breakeven point.
The answer, Simply Wall St. says, is “around 12 months from now or less.”
This echoes sentiments expressed by Audacy head David Field.
Could Audacy’s debt-to-equity ratio be scaring off investors?
“Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot,” it warns. “Note that a higher debt obligation increases the risk around investing in the loss-making company.”