Shareholders Approve Critical Move for Co-Diagnostics’ Nasdaq Listing

In a decisive move to secure its position on the Nasdaq exchange, shareholders of molecular diagnostics company Co-Diagnostics have granted the board critical authorization. During a special meeting held on December 5, 2025, investors approved a proposal allowing management to execute a reverse stock split within a range of 1-for-2 to 1-for-30.

This corporate action is a direct countermeasure to the persistent challenge of maintaining a minimum bid price. Nasdaq listing rules mandate that shares trade at or above $1.00. Co-Diagnostics' stock has been languishing well below this threshold, recently trading in a range of $0.35 to $0.37. Without intervention to raise the share price, the company faced the imminent risk of delisting, which would have severely impacted the stock's liquidity and market access.

The board now has a one-year window to implement the consolidation at a time it deems strategically advantageous. While a reverse split mathematically increases the per-share price, it does not alter the fundamental market valuation or the intrinsic value of the business.

Underlying Financial Metrics Paint a Challenging Picture

Although the reverse split addresses the technical listing issue, the company's core financial hurdles remain starkly evident. A significant disparity exists between its market capitalization and its operational revenue.

• The company's market value is currently estimated between $22.7 million and $23.5 million.
• This stands in contrast to a trailing twelve-month revenue figure of approximately $507,890.
• For the third quarter of 2025 alone, Co-Diagnostics reported a net loss of about $5.9 million.

These figures result in a price-to-sales (P/S) ratio of roughly 44 to 46—an exceptionally high valuation that appears largely predicated on future potential. This optimism centers on the company's new Co-Dx PCR platform business and its joint venture developments. The company continues to report negative operational cash flow.

Should investors sell immediately? Or is it worth buying Co-Diagnostics?

Analyst Sentiment Hinges on Long-Term Strategy

Despite the weak current fundamentals, a handful of covering analysts maintain a patient, forward-looking stance. Most current ratings cluster around "Hold" or "Moderate Buy," with average price targets situated between $1.50 and $1.83 per share. These targets reflect an expectation that the company's strategic repositioning and product pipeline may yield results over the longer term.

Notably, Maxim Group reaffirmed a "Buy" rating late in 2025. However, all such assessments are heavily contingent on the future commercial success of the Co-Dx platform, an outcome that is not yet assured.

The Path Forward: Execution is Key

With the shareholder vote concluded, the focus now shifts to execution. Investor attention will be concentrated on several critical upcoming developments:

1. Implementation Timing: The decision of when the board will activate the reverse stock split authority is now a key variable.
2. Capital Management: As of mid-2025, the company held cash reserves of approximately $13.4 million. Prudent management of these funds is essential given the ongoing quarterly losses.
3. Commercial Progress: A genuine inflection point will require tangible operational successes. Announcements related to FDA submissions or initial sales contracts for the Co-Dx PCR platform would serve as concrete growth catalysts.

The immediate milestones for investors to watch will be forthcoming quarterly financial reports and any corporate communications regarding the reverse split execution plan.