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Quantum Increases its Per Share Price With Reverse Stock Split
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Quantum Corporation (QMCO - Free Report) recently announced that it will execute a 1-for-20 reverse stock split strategy to increase the per share trading price of its common stock and adhere to the Nasdaq stock market's continued listing standards.
Under reverse stock split, a company reduces its total number of outstanding shares while proportionally increasing the share price. With this, QMCO’s every 20 shares of its common stock will be reclassified into one share. Although the number of shares each investor holds decreases, the value of their total holdings remains unaffected.
In cases where the reverse split results in a fractional share, the company ensures rounding it up to the adjacent whole share. QMCO’s move is likely to decrease nearly 95,849,938 outstanding shares of its common stock to almost 4,792,497 shares.
It will also make proportionate adjustments to its outstanding equity awards, warrants and the maximum number of shares issuable under its equity incentive plans. The exercise or conversion prices for these instruments will be adjusted so that the par value of the common stock remains unchanged. The company’s common stock will commence trading on a split-adjusted basis on the Nasdaq exchange starting Aug. 27, 2024, with a new CUSIP number of 747906600 under the current ticker "QMCO."
For shareholders holding their stock in book entry form or through brokers or other nominees, no action is required, as their positions will be automatically adjusted to reflect the reverse stock split. However, shareholders who hold stock certificates will receive instructions from QMCO’s transfer agent, Computershare Trust Company, N.A., on how to collect their new post-split shares.
QMCO is a leading provider of end-to-end data management solutions. It offers solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. It caters to leading organizations in life sciences, government, media and entertainment, research and industrial technology verticals. Its premium Myriad and ActiveScale products continue to gain momentum.
Nonetheless, soft demand trends across Product, Service and Subscription and Royalty businesses are affecting QMCO’s overall performance. In the last reported quarter, its revenues plunged 23% year over year to $71.3 million. Management further highlighted a temporary headwind to gross margins due to a shift in product mix and supply constraints that hurt its results during the quarter. These issues have heightened the current order backlog to above-standard levels.
QMCO currently carries a Zacks Rank #4 (Sell). Its shares have lost 64.4% in the past year against the sub-industry’s growth of 71.1%.
Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%.
Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.
Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
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Quantum Increases its Per Share Price With Reverse Stock Split
Quantum Corporation (QMCO - Free Report) recently announced that it will execute a 1-for-20 reverse stock split strategy to increase the per share trading price of its common stock and adhere to the Nasdaq stock market's continued listing standards.
Under reverse stock split, a company reduces its total number of outstanding shares while proportionally increasing the share price. With this, QMCO’s every 20 shares of its common stock will be reclassified into one share. Although the number of shares each investor holds decreases, the value of their total holdings remains unaffected.
In cases where the reverse split results in a fractional share, the company ensures rounding it up to the adjacent whole share. QMCO’s move is likely to decrease nearly 95,849,938 outstanding shares of its common stock to almost 4,792,497 shares.
It will also make proportionate adjustments to its outstanding equity awards, warrants and the maximum number of shares issuable under its equity incentive plans. The exercise or conversion prices for these instruments will be adjusted so that the par value of the common stock remains unchanged. The company’s common stock will commence trading on a split-adjusted basis on the Nasdaq exchange starting Aug. 27, 2024, with a new CUSIP number of 747906600 under the current ticker "QMCO."
Quantum Corporation Price and Consensus
Quantum Corporation price-consensus-chart | Quantum Corporation Quote
For shareholders holding their stock in book entry form or through brokers or other nominees, no action is required, as their positions will be automatically adjusted to reflect the reverse stock split. However, shareholders who hold stock certificates will receive instructions from QMCO’s transfer agent, Computershare Trust Company, N.A., on how to collect their new post-split shares.
QMCO is a leading provider of end-to-end data management solutions. It offers solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. It caters to leading organizations in life sciences, government, media and entertainment, research and industrial technology verticals. Its premium Myriad and ActiveScale products continue to gain momentum.
Nonetheless, soft demand trends across Product, Service and Subscription and Royalty businesses are affecting QMCO’s overall performance. In the last reported quarter, its revenues plunged 23% year over year to $71.3 million. Management further highlighted a temporary headwind to gross margins due to a shift in product mix and supply constraints that hurt its results during the quarter. These issues have heightened the current order backlog to above-standard levels.
QMCO currently carries a Zacks Rank #4 (Sell). Its shares have lost 64.4% in the past year against the sub-industry’s growth of 71.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Arista Networks, Inc. (ANET - Free Report) , Harmonic Inc. (HLIT - Free Report) and Ubiquiti Inc. (UI - Free Report) . ANET and HLIT presently sport a Zacks Rank #1 (Strong Buy) each, whereas UI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%.
Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.
Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.