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Diebold Nixdorf (NYSE:DBD) stock is taking a beating on Friday after the company released its annual shareholder letter for 2022.
The big news investors are latching onto from this letter has to do with the company’s liquidity. Specifically, the company says it’s dealing with “near-term pressure on liquidity.” That unnerved investors today, which explains the stock’s drop.
Breaking that down further, Diebold Nixdorf says it continues to use a steady flow of cash to reach its demand and production forecasts. However, a problem for the company is its efforts to turn inventory into revenue are taking longer than expected.
In addition to all of this, the company says that its ability to continue its business has become a going concern. This has it reaching out to lenders seeking help in the form of near-term financing to continue operations.
Here’s a portion of that letter to investors of DBD stock:
“The Company expects the first-in-last-out facility to provide $55 of additional liquidity and to close by March 20, 2023, however, there can be no assurance that such a facility will be entered into by such date or at all. In addition, the Company is in discussions with its lenders about other strategic initiatives and liquidity solutions for its business.”
DBD Stock Movement Today
Following these warnings from Diebold Nixdorf, some 376,000 shares of DBD stock are changing hands. That’s still below the company’s daily average trading volume of about 1.6 million shares.
DBD stock is down 41.7% as of Friday morning.
There’s more stock market news worth reading about below!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Friday! That includes why shares of Histogen (NASDAQ:HSTO) and Enzo Biochem (NYSE:ENZ) stock are rising, as well as the biggest pre-market stock movers this morning. You can read up on all that news at the following links!
More Friday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
