Few companies have provided the see-saw ride Lordstown Motors (NASDAQ:RIDE) has this past year. Indeed, investors in RIDE stock have seen significant downside in recent months.
After hitting a high of $31.80 in February, RIDE stock has steadily declined to below its SPAC IPO price of $10 per share. As we’ve seen with other SPAC-related offerings, deteriorating sentiment among these plays has taken such stocks on a downward trajectory of late. Rising bond yields and a growth-to-value rotation in the market haven’t helped things.
However, for Lordstown, the company has its own set of issues that have hampered this stock of late. In particular, a scathing short report from Hindenburg Research poured a boatload of cold water on this stock near its peak. Allegations that Lordstown misled investors has led to an SEC investigation of the company. Indeed, this EV startup is one that isn’t getting a lot of love from the market right now.
However, today’s upside move of more than 12% suggests perhaps this recent selling may be overdone. Let’s dive into what is driving investor expectations for Lordstown higher today.
RIDE Stock Surging on Lordstown Week News
Ahead of Lordstown’s upcoming earnings call, the company announced a couple big items of interest for investors.
The big news that appears to be moving RIDE stock today is the company’s announced “Lordstown Week” next month. From June 21-25, Lordstown will open itself up to investors. The company’s management team will be spending time with shareholders to show the progress the company has made. The company aims to allow investors “to experience firsthand how the production team is preparing the plant for the ramp-up to be ready for the beginning of early production units of the Endurance in late September of this year.”
This news comes amid another key announcement that Lordstown would be pushing back its earnings report. While no reason was given for the delay, it appears the company’s ongoing legal troubles are providing a distraction right now.
On balance, investors appear to be taking these announcements well. It appears more visibility into Lordstown’s operations is being viewed extremely positively by investors. Given the extent to which RIDE stock has fallen, today’s move appears to be justified by this news.
On the date of publication, Chris MacDonald 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.