Puxin Ltd. (NEW) stock prices were down by 23.76% as of the market closing on October 12th 2021. This brought the price per share down to USD$0.4536 at the end of the trading day. Subsequent premarket fluctuations have seen the stock surge by 57.87%, bringing it down to USD$0.71.
NEW Stock at Risk of Delisting
August 19th, 2021 saw NEW stock announce having received a notice from the New York Stock Exchange. The company was informed of its failing to meet regulatory standards in connection with the performance of the trading price of its American Depositary Shares (ADSs). As per Section 802.01C of the NYSE’s Listed Company Manual, a company is considered to have failed meeting compliance criteria in the case of its average closing price falling to less than USD$1.00 over a consecutive 30 trading day period.
Details of NYSE Notification
Upon notification, the company then has six months to bring the price of its shares and average share price back up to a minimum of USD$1.00. Compliance is regained with Section 802.01C at any time during that six month period when the share price is at least USD$1.00 on both the last trading day of any calendar month within the six month cure period, as well as maintain an average share price of at least USD$1.00 over the 30 trading days preceding the end of that month. Failure to regain compliance within six months will result in the NYSE commencing suspension and delisting procedures.
Q1 2021 Net Revenues
NEW Stock reported net revenues in the amount of USD$104.8 million for the first quarter of fiscal 2021. This represents an 8.6% reduction from the numbers reported in the prior year quarter. The year over year difference was largely driven by a decrease in student enrollments. The first quarter of the fiscal 2020 quarter reported student enrollment of 580,661, while the 2021 quarter reported 539,355 student enrollments. Net revenues for K-12 tutoring services came out to USD$84 million, representing a 5.2% year over year increase. This yearly difference was primarily attributable to improved teaching service quality, as well as enriching content of products.
Future Outlook for NEW Stock
The company is experiencing a turbulent time, which it expects to come out of stronger than ever before. NEW stock is pushing to regaining compliance with the NYSE listing price requirements in a bid to continue its recent trajectory of success. current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value.
