2U Inc. Considers Reverse Split to Avoid Nasdaq Delisting Risks
Company Announcements

2U Inc. Considers Reverse Split to Avoid Nasdaq Delisting Risks

2U Inc. (TWOU) has disclosed a new risk, in the Share Price & Shareholder Rights category.

2U Inc. faces significant business risk as it struggles to meet the Nasdaq Global Select Market’s minimum bid price requirement for continued listing. The company has been warned that its common stock price has fallen below the $1.00 threshold, and it has until September 10, 2024, to regain compliance. To address this, the Board is contemplating a reverse stock split, hoping to sustain Nasdaq listing benefits such as credibility, visibility, and liquidity. However, if 2U Inc. is delisted, it could experience reduced stock price, diminished liquidity, and challenges in financing, potentially leading to a detrimental impact on its overall business operations.

The average TWOU stock price target is $1.13, implying 232.35% upside potential.

To learn more about 2U Inc.’s risk factors, click here.

Related Articles
Christine BrownTWOU Earnings Report this Week: Is It a Buy, Ahead of Earnings?
TheFlyThree new option listings and one option delisting on August 7th
Sheryl Sheth3 Penny Stocks to Watch Now, 8/1/24
Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App