Cumulus Media could be on the verge of getting the boot from Nasdaq, unless it considers another reverse stock split.
The No. 2 radio company by number of AMs and FMs, Cumulus shares dipped 5.7% in mid-week trading on Wall Street, on heavier than average volume of 326,268 shares.
The fall, to 33 cents, puts CMLS shares at their lowest price since mid-May, signaling shakiness among stockholders ahead of the company’s Q3 finish on Friday.
Cumulus’ market cap presently stands at $9.67 million; its one-year target estimate is 63 cents.
Cumulus Media in late March received a de-listing notice from Nasdaq for failing to have its stock close at a minimum $1 per share for more than month. It initially had until May 5 to comply, and then received a 180-day extension.
With today’s big dip on Wall Street for CMLS shares, options are thin for Cumulus.
Nasdaq’s compliance deadline comes following a 1-for-8 reverse stock split conducted in mid-October 2016, designed to further avoid any further delisting concerns.
Had the reverse stock split not taken place, Cumulus shares would presently be valued at approximately 4 cents each.
If Cumulus were to engage in another reverse stock split, at minimum it would be a 1-for-3 arrangement, based on its present stock value.
A previous warning from Nasdaq regarding a possible delisting came in November 2015.
In other Wall Street Report activity, found at the homepage of RBR.com:
- Veritone Inc. shareholders made a quick profit from yesterday’s historic close by selling off shares, sending the AI tech firm’s stock down 30.3%, to $45.95. Still, VERI was at $7.87 in late August.
- Beasley Broadcasting Group shares improved 4.3%, to $12.20.