Mullen Automotive Stock Forecast: MULN rises less than 1% despite need to attain $1.00
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- MULN stock must maintain a share price above $1 for 10 consecutive sessions by September 5.
- Mullen announced on Thursday that it began repurchasing MULN shares on Wednesday.
- Mullen has already purchased $3.6 million worth of shares out of its $25 million mandate.
- Closing Thursday at $0.79, MULN stock needs to rise 26.6% to reach $1.00 – the threshold for retaining its NASDAQ listing.
Mullen Automotive (MULN) has its work cut out for it as the date for meeting the NASDAQ’s listing requirements is just days away. MULN stock – closing Thursday at $0.79 after selling off an astounding 19.4% – has just three sessions left to regain the $1.00 threshold for remaining listed. This means MULN needs to rally at least 26.6% by the close of Tuesday, August 22.
Thus far, MULN stock has gained 0.75% in Friday’s premarket as NASDAQ 100, S&P 500 and Dow futures all lose ground before the opening bell. NASDAQ 100 futures have receded 0.85% alone and are leading the other indices.
Mullen stock news: MULN repurchases begin with $3.6 million buyback
On Thursday, Mullen announced that it had already used $3.626 million to repurchase 3.7 million shares of MULN stock. The repurchases began on Wednesday, August 16, but it has not stopped the share price from losing one-fifth of its value.
Additionally, CEO David Michery also bought 102,040 shares for an average price of $0.9842 on Wednesday. Following Mullen’s 1-for-9 reverse stock split on August 11, the company had somewhere around 71.5 million shares outstanding. With the repurchase policy in effect, there should be fewer than 68 million shares outstanding already.
NASDAQ Listing Rule 5810(c)(3)(H) states: “If a Company fails to meet the [Minimum Bid Price requirement], compliance is generally achieved by meeting the requirement for a minimum of ten consecutive business days.”
Since the market is closed on September 4 for the Labor Day holiday, this means that MULN stock must maintain a share price above $1.00 for every session between August 22 and September 5. After that, it is up to NASDAQ’s discretion. NASDAQ staff can take into account how far above the $1.00 threshold the shares trade at, average trading volumes and trend direction.
The Mullen board gave the leadership $25 million to spend on buybacks through the end of the year, so Mullen should have $21.4 million left to continue repurchasing. Expect MULN stock to move higher toward $1 over the next three sessions as management makes a last-ditch effort to retain its NASDAQ listing. If management fails to do so, then MULN stock will almost certainly slump drastically in September.
Mullen stock forecast
When you’re desperately trying to maintain a listing price threshold, it’s not a good thing to hit a new all-time low. But that is just what MULN stock did on Thursday. Mullen stock broke below the $0.90 support level to close at $0.79.
The 21-day Simple Moving Average (SMA) sits at $1.10, so bulls or desperate shareholders better shoot for that level at least in order to maintain a safe distance from the $1 threshold.
With a market cap of $56.5 million, the more than $21 million available for repurchases could do serious damage and possibly even inflict a short squeeze. According to data from the end of July, just under 20% of shares were sold short at that time.
MULN daily chart
