STAF - STAF Stock: 7 Things to Know as Staffing 360 Shares Rocket Higher
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Today, investors in Staffing 360 Solutions (NASDAQ:STAF) and STAF stock are seeing gains of more than 30% at the time of writing. Indeed, these gains come at a time of relative volatility for this stock. However, it appears recent moves the company has made have created more stability for shareholders.
A recently announced 6-for-1 reverse stock split went into effect yesterday. Accordingly, shares of STAF stock now trade at just under $5 per share, relative to previous levels below $1 per share. This decision was made as part of the company’s intention to maintain listing requirements with the Nasdaq.
While reverse stock splits are generally viewed as a negative, sometimes investors see them positively. As the company’s CEO recently commented, “We are effecting this reverse stock split to raise Staffing 360’s common stock price in order to regain compliance with the NASDAQ Capital Market’s $1.00 per share minimum bid continued listing requirement. We believe the trading of our shares on a national market increases our visibility in the marketplace, improves liquidity, broadens and diversifies our shareholder base, and ultimately enhances long-term shareholder value.”
Indeed, it appears the market is taking this view today.
Let’s dive into some things investors may want to know about Staffing 360 Solutions.
What Investors Need to Know About STAF Stock
- Staffing 360 Solutions is a conglomerate of staffing organizations.
- The company’s focus is on growing its U.S. and U.K. presence through a buy-integrate-build model.
- Its growth-by-acquisition model is one investors seem to like, along with the company’s position in the HR/recruiting field.
- Staffing 360 also recently announced the full forgiveness of its largest PPP loan of $10 million.
- Additionally, the company expects 20% revenue growth in its upcoming quarter.
- The company’s medium-term goal is to build a profitable $500 million revenue company.
- For a company trading at a market capitalization of under $200 million today, this potential sounds exciting to existing investors.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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