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Is Staffing 360 Solutions Stock a Smart Investment?

imageStock Markets20 minutes ago (Jul 06, 2021 01:30PM ET)

(C) Reuters. Is Staffing 360 Solutions Stock a Smart Investment?

Shares of Staffing 360 Solutions (STAF) surged 32.5% in price over the past month on investors’ optimism surrounding its improved, anticipated second-quarter financial results. However, the company recently executed a reverse stock split to regain compliance with Nasdaq. So, let’s evaluate if this is a good time to bet on the stock. Read on.As an emerging company in the staffing industry, Staffing 360 Solutions, Inc. (STAF) acquires and integrates U.S. and U.K. staffing agencies. Investors’ optimism surrounding STAF’s improved anticipated financial results for the about-to-be-reported quarter (ended July 3, 2021) drove the stock to a 32.5% gain over the past month, to close Friday’s trading session at $4.99.

The company expects 20% year-over-year growth in its revenue and gross profit in the second quarter. However, the stock has retreated 15.1% over the past year and 4.8% over the past three months. STAF is currently trading 75.1% below its 52-week high of $20.04, which it hit on October 15, 2020.

The company executed a reverse stock split on July 1, at a ratio of 1 post-split share for every 6 pre-split shares to regain compliance with the NASDAQ Capital Market’s $1.00 per share minimum bid continued listing requirement. While the company expects positive net income for the quarter ending July 3, 2021, it incurred losses until the first quarter.

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Is Staffing 360 Solutions Stock a Smart Investment?

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