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Summary
- GTT stock more than doubled its value this month.
- The stock, which hit US$60 in 2018, is currently trading at US$2.83.
- GTT’s sale of its infrastructure unit is expected to complete in the first half of 2021.
GTT Communications, Inc. (NYSE:GTT) stock jumped more than 25 percent on Thursday’s pre-market trading and continues its rally after the markets opened. The stock’s value more than doubled this month.
However, the share price is down approximately 14 percent year to date and remains considerably low when compared to its trading price of over US$60 in 2018.
GTT Communications’ stock price has been on a downward trajectory after it hit the record in 2018. The shares have shown signs of recovery a couple of times but those gains did not last much longer.
The company has US$145.87 million in market capitalization. During the 52-week period, the shares rallied up to US$8.52 from a low of US$1.37.
As of 9.34 am ET, GTT Communication stock was trading at US$2.834, up 14.2 percent. The share price rose 13.24 percent to end the trading at US$2.48 on Wednesday.
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Delay in filing the restated financial statements
After publishing its results for the first quarter of 2020 in May last year, GTT Communication did not publish any financial statements.
While closing the books for the quarter ended June 2020, the company found certain accounting issues related to the cost of telecommunications services and certain other items. And in December 2020, GTT Communication said its previously issued financial statements for 2019, 2018 and 2017 should not be relied upon.
Source: Pixabay
The Virginia-based telecommunications and internet service provider is still in the process of restating the financial statements for the previous periods. GTT Communication is not in compliance with the SEC’s timely filing requirements and risks delisting.
Meanwhile, a news report in May said the company was exploring options for Chapter 11 bankruptcy protection.
GTT’s $2.15 billion infrastructure unit sale
In October 2020, GTT Communications agreed to offload its infrastructure unit for US$2.15 billion to I Squared Capital.
The sale includes GTT Communications’ fiber networks in Europe and North America, three transatlantic subsea cables and 14 data centers.
The company had then said this disinvestment supports its plans for a business model with less capital expenditure and reinforces its focus on cloud networking. The sale is slated to close in the first of this year.
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Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
