Meihua International Medical Technologies (MHUA) stock took a beating on Monday after the Chinese medical consumables company announced it had received a letter from the Nasdaq. The stock exchange has determined it will delist shares of MHUA stock from the Nasdaq Capital Market when markets open on Tuesday.
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Meihua International Medical Technologies has appealed the Nasdaq’s decision, but there doesn’t seem to be much hope for it to avoid the delisting. The current issue it faces is the price of its stock, which has remained below the $1 minimum for an extended period of time. The company attempted to rectify this with a reverse stock split but failed to keep the stock price up after the split. It has also already used both 180-day extensions to regain compliance. Additionally, it’s no longer compliant with the minimum share count rule, which requires at least 500,000 publicly held shares.
All of this suggests that Meihua International Medical Technologies stock won’t remain on the Nasdaq for much longer. If the delisting does occur, it’s unclear what will happen to MHUA stock. It could start to trade on the OTC Markets, but the company hasn’t said anything about this yet.
Meihua International Medical Technologies Stock Movement Today
Meihua International Medical Technologies stock was down 28.89% in pre-market trading on Monday, following an 11.71% rally on Friday. The stock has decreased 59.37% year-to-date and 72.37% over the past 12 months.
Trading activity today is muted, with some 4,000 shares of MHUA stock traded, compared to a three-month daily average of about 258,000 units.
Is Meihua International Medical Technologies Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of Meihua International Medical Technologies is limited. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates MHUA stock a Neutral (55) with a $14 price target. It cites “a combination of solid financial performance and bearish technical indicators” as reasons for this stance.
