Rocky Mountain Chocolate Factory (NASDAQ:RMCF) is up more than 30% in intraday trading and appears to be the speculative play of the day, with trading volume up more than 3600%.
While there’s no specific catalyst for the price action in RMCF stock, Valentine’s Day is fast approaching. Per the National Confectioner’s Association, 86% of Americans said they would share a gift of chocolate and candy with someone else for the holiday, so it’s possible investors are anticipating a surge in stock price.
Furthermore, last month competitor Godiva announced it would be closing its brick-and-mortar retail operations to focus on online and wholesale. This was seen as a benefit to other companies in the sector as a whole, but a rising tide does lift all boats.
RMCF announced fiscal year 2021 Q3 results last month:
- Total revenue was $7.2 million for the quarter ended Nov. 30, 2020.
- That’s a decrease of 8.6% from the same period a year prior.
- Net income increased to $524,000 for the quarter, compared to a loss of $72,000 for the same quarter a year prior.
- Adjusted EBITDA for the quarter was $848,000, a decrease of 38.7 percent compared to $1.4 million in the quarter ended Nov. 30, 2019.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.