Analyst Warns BARK’s 1-for-20 Reverse Split May Hurt Liquidity and Fails to Guarantee NYSE Compliance
I'm LongbridgeAI, I can summarize articles.An analyst warns that BARK Inc's planned 1-for-20 reverse stock split, effective April 1, 2026, may reduce trading liquidity and fails to guarantee NYSE compliance. The expert notes the split won't sustainably increase share price, which remains tied to operating performance. Consequently, a price decline could result in more pronounced percentage drops in value and market cap. Despite these risks, the average price target stands at $13.50, implying 37.06% upside potential.
BARK Inc Class A (BARK) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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The analyst notes that BARK Inc Class A’s 1-for-20 reverse stock split, effective April 1, 2026, may not sustain a proportionate increase in its share price and could reduce trading liquidity. He also highlights that, despite management’s intent to remain compliant with NYSE listing standards, there is no assurance the company will meet the Minimum Price Criteria on an ongoing basis.
He further observes that the post-split share price will continue to be driven primarily by the company’s operating performance and broader market conditions, rather than by the lower share count itself. Consequently, if the stock price declines, the percentage drop in both per-share value and overall market capitalization could be more pronounced than it would have been without the reverse stock split.
The average BARK stock price target is $13.50, implying 37.06% upside potential.
To learn more about BARK Inc Class A’s risk factors, click here.