Please ensure Javascript is enabled for purposes of website accessibility

Why USA Technologies Stock Was Slammed Today

By Daniel Sparks - Updated Apr 24, 2019 at 2:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Ouch! Here's what cut the stock in half.

What happened

Shares of USA Technologies (USAT -0.52%), a networking and cashless transaction company, plummeted on Thursday, falling as much as 53.6%. As of 3:50 p.m. EST, the stock was down 50.9%.

The stock's sharp decline follows a filing with the Securities and Exchange Commission revealing that the company's auditor, RSM, is resigning from its role as an independent registered public accounting firm for USA Technologies.

A chalkboard sketch of a chart showing a stock price falling

Image source: Getty Images.

So what

In conjunction with RSM's resignation, the company's board of directors stated that some financial statements and related press releases concerning the fiscal year ended June 30, 2017, are not reliable. The board's determination about these 2017 financial statements was made "upon the recommendation of the Audit Committee and following discussions with management."

This news comes after the company began an internal probe into its accounting and reporting procedures last year.

Now what

The company plans to restate its fiscal 2017 results and other 2017 financial statements "as soon as practicable." In addition, management said the company "is also working diligently to complete and file the Annual Report on Form 10-K for the fiscal year ended June 30, 2018 and the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2018 as soon as practicable."

To better understand the implications of this SEC filing, investors may want to read the entire 8-K on the company's investor relations page.

Check out the latest earnings call transcripts for companies we cover.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

USA Technologies, Inc. Stock Quote
USA Technologies, Inc.
USAT
$5.76 (-0.52%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.