MarketWise receives Nasdaq non-compliance notice By Investing.com

MarketWise, Inc., a prepackaged software services company, has been notified by The Nasdaq Stock Market of its non-compliance with the minimum bid price requirement, as the closing bid price of its common stock fell below the $1.00 threshold for 30 consecutive business days. The notice, received on Monday, does not immediately affect the company’s listing on the Nasdaq Global Market.

The company, headquartered in Baltimore, Maryland, has been given an initial period of 180 days, until March 24, 2025, to meet the minimum bid price criterion. The stock’s closing bid price must reach or surpass $1.00 for at least 10 consecutive business days before this deadline to regain compliance.

If MarketWise fails to comply by March 24, 2025, it may apply for an additional 180-day period by planning to transfer its listing to the Nasdaq Capital Market, provided it meets all other initial listing standards, except for the bid price. The company may also consider a reverse stock split during the second compliance period to remedy the deficiency.

Should MarketWise not achieve compliance within the given timeframe(s), Nasdaq will issue a delisting notice, to which the company can appeal. As of now, MarketWise has not decided on a course of action but will monitor its stock’s closing bid price and evaluate available options to regain compliance.

In other recent news, MarketWise, Inc. reported its Q2 2024 financial results and announced a quarterly cash dividend of $0.01 per share for holders of its Class A common stock. The company’s COO, Chad Curlett, has stepped down, with a separation agreement in place that includes a $100,000 lump-sum payment and a twelve-month non-solicitation clause. No successor has been announced yet.

In other significant changes, F. Porter Stansberry resigned as Chairman and CEO, leading to the appointment of Dr. David Eifrig as interim CEO and Matthew Turner as Acting Chairman of the Board. Negotiations for the acquisition of Porter & Company, LLC, valued at $40 million, were also terminated.

InvestingPro Insights

MarketWise’s current situation reflects the challenges highlighted in its recent Nasdaq notification. According to InvestingPro data, the company’s stock is trading at just 18.45% of its 52-week high, with a significant year-to-date price total return of -74.18%. This aligns with the InvestingPro Tip that the stock has been trading near its 52-week low and has performed poorly over various time frames.

Despite these challenges, MarketWise maintains a relatively low P/E ratio of 6.87, which could be attractive to value investors. An InvestingPro Tip suggests that the company is trading at a low P/E ratio relative to its near-term earnings growth, potentially indicating undervaluation.

Interestingly, management has been aggressively buying back shares, according to another InvestingPro Tip. This could signal confidence in the company’s future prospects despite the current stock price struggles. For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for MarketWise, providing a deeper understanding of the company’s financial health and market position.

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