In a challenging market environment, Ammo Inc. (NASDAQ:POWW) stock has reached a 52-week low, trading at $1.08. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.17 and holds more cash than debt on its balance sheet. The arms and ammunition manufacturer has faced significant headwinds over the past year, reflected in a substantial decline of -55% over the past six months. While trading at an attractive Price/Book ratio of 0.38, investors have shown concern as the company navigates through a period of heightened regulatory scrutiny and shifting consumer demand within the firearms industry. The current price level marks a critical juncture for Ammo Inc., as stakeholders closely monitor the company's strategic moves to rebound from this low point. InvestingPro analysis suggests the stock is currently undervalued, with analysts forecasting a return to profitability this year. Discover more insights and 8 additional ProTips with an InvestingPro subscription.
In other recent news, Ammo, Inc. has been advised by its independent accounting firm, Pannell Kerr Forster of Texas, P.C., that its financial statements for fiscal years 2021 through 2024 should no longer be relied upon. This announcement came after an internal investigation into potential inaccuracies in management disclosures and related party transactions, among other issues. The company has acknowledged material weakness in its internal financial controls and is taking steps to address these issues.
In further developments, Ammo, Inc. reported a decrease in its fiscal first quarter 2025 revenue to approximately $31 million, impacted by non-recurring expenses totaling $6.3 million. Despite this downturn, the company maintains confidence in its long-term stability and profitability, with a focus on rifle and pistol production, and eCommerce innovations.
Roth/MKM has adjusted its price target on shares of Ammo, Inc., bringing it down to $1.60 from the previous $2.00, while maintaining a neutral rating on the stock. Amid these challenges, the company is gearing up for the launch of new premium rifle hunting segments and anticipates growth in rifle production in the upcoming quarters of 2025. These are the recent developments in Ammo, Inc. that investors should consider.
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