La Rosa Holdings Corp. (NASDAQ:LRHC) shares are seeing heavy selling pressure on Thursday. The stock dropped over 20% following news of a regulatory hurdle.
The Nasdaq is up 0.04% while the S&P 500 has shed 0.05%.
• La Rosa Holdings stock is testing lower boundaries. Why did LRHC hit a new low?
Nasdaq Issues Delinquency Notice
On April 16, the Nasdaq notified the multi-service real estate company of non-compliance with Listing Rule 5250(c)(1). This notice follows the company’s failure to timely file its Annual Report on Form 10-K. The report covers the fiscal year ended Dec. 31.
Path to Regaining Compliance
The notice does not immediately delist the stock. However, the company must submit a compliance plan by June 15. If accepted, Nasdaq may grant an extension until Oct. 12. Nasdaq will weigh the company’s financial condition and past compliance history.
Management Prioritizes Filing
CEO Joe La Rosa addressed the delay in a statement. “We are in the final stages of preparing our annual report on Form 10-K and are prioritizing its completion,” La Rosa stated. He noted the company intends to file promptly to return to compliance.
Technical Analysis
LRHC is sitting near the bottom of its 52-week range of $1.92 to $1,865.60. The stock is trading 56.2% below its 20-day simple moving average (SMA) and 95.4% below its 100-day SMA.
The relative strength index (RSI), a momentum gauge, is 26.60.
On a longer lens, the stock is down 99.79% over the past 12 months.
The moving-average stack (20-day SMA below the 50-day SMA, and the 50-day SMA below the 200-day SMA) matches that longer-term bearish structure and keeps the burden on buyers to prove a base.
- Key Resistance: $5
- Key Support: $2.50
LRHC Stock Price Activity: La Rosa Holdings shares were down 20.62% at $2.04 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: Lee Charlie via Shutterstock
Recent Comments