Today, E-Home Household Service (NASDAQ:EJH) is bleeding red. In fact, at the time of writing, EJH stock is down more than 60% today alone. Compared to the company’s 52-week high, this is a stock that’s lost approximately 90% of its value.
Currently, more than 31 million shares have traded hands. This compares to an average daily volume of approximately 200,000 shares. Any sort of massive move like this on heavy volume usually indicates something is awry with this stock.
However, EJH stock is one that’s moved wildly since its initial public offering (IPO). On the company’s first day of public trading, EJH stock shot 1,100% higher and traded as high as $80.93 on its second day of trading. Since then, the company has come down to earth, trading closer to its IPO price of $4.50 per share today than it has before.
This kind of volatility is unusual, particularly on a lack of news. However, the recent accelerating crackdown Chinese regulators have imposed on Chinese companies is likely a key driver of today’s mass exodus from this stock.
For those curious about what E-Home Household Service does, let’s dive into a few things to know about this company.
What Investors May Want to Know About EJH Stock
- E-Home Household Service is a company offering a range of household services to its clientele.
- These services include installation and maintenance, housekeeping, and senior care services.
- The company aims to be an extra set of hands around the house.
- The market for these services in China is large, and EJH stock has surged in anticipation of growth.
- Currently, the company partners with 2,600 individuals and service stores for home appliance deliveries and services. More than 1,000 cleaners and nannies are also employed by the company.
- Annual growth in the segments that E-Home operates in averages approximately 20% a year.
- The company went public in May at a price of $4.50 per share and raised more than $10 million as a result of its offering.
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.