Shimmick Corporation, a company specializing in heavy construction, announced today that it has received approval to transfer its stock listing from The Nasdaq Global Market to The Nasdaq Capital Market. The move, set for the opening of trading on Monday, is not expected to affect the trading of its shares, which will continue under the ticker symbol SHIM.
The Irvine-based firm, previously known as SCCI National Holdings, Inc., made the voluntary change in listing which was approved by The Nasdaq Stock Market LLC's Listing Qualifications Department. The Nasdaq Capital Market, one of three Nasdaq market tiers, provides a similar trading experience to the Global Market.
This transition comes as Shimmick Corp continues to operate within the heavy construction sector under the SIC code for contractors other than building construction. The company, incorporated in Delaware with its fiscal year ending on December 31, maintains its headquarters at 530 Technology Drive, Suite 300, Irvine, CA.
In other recent news, Shimmick Corporation has announced significant developments. The company recently appointed Ural Yal as the new CEO, succeeding Steve Richards. Yal, a seasoned professional in the sector, is expected to guide Shimmick into its next phase of growth. In addition, Shimmick has settled its Golden Gate Bridge litigation for a substantial $97 million, marking a major step in the company's broader transformation plan.
In terms of financial adjustments, Shimmick has amended its credit agreements with MidCap Financial Services, LLC, AECOM, and Berkshire Hathaway (NYSE:BRKa) Specialty Insurance Company. These amendments are expected to enhance Shimmick's financial flexibility, providing increased operational headroom and liquidity for ongoing and future projects. However, Craig-Hallum has reduced Shimmick's price target to $3 due to project delays and increasing costs.
Shimmick's recent Q2 results reported an adjusted loss of $1.60 per share and revenue at $91 million, significantly missing analyst projections. Despite this, the company projects a generally flat year-over-year revenue for Shimmick Projects in fiscal 2024, with a gross margin between 4-9%.
InvestingPro Insights
As Shimmick Corporation (SHIM) transitions to the Nasdaq Capital Market, investors should be aware of some key financial metrics and insights provided by InvestingPro. The company's market capitalization stands at $70.97 million, reflecting its current position in the heavy construction sector.
InvestingPro Tips highlight some challenges facing Shimmick. The company is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors could be contributing to the decision to move to the Capital Market, which often has less stringent listing requirements than the Global Market.
The company's financial health appears strained, with revenue declining 24.41% over the last twelve months as of Q3 2024. This aligns with another InvestingPro Tip indicating that "analysts anticipate sales decline in the current year." Additionally, Shimmick's gross profit margin is -6.84%, supporting the tip that the company "suffers from weak gross profit margins."
Despite these challenges, it's worth noting that Shimmick's stock has seen a significant price uptick of 32.91% over the last six months. However, this should be viewed in context with the year-to-date price return of -68.18%, illustrating the stock's volatility.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips on Shimmick Corporation, providing a deeper understanding of the company's financial position and market performance.
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