Today, Huadi International (NASDAQ:HUDI) is one of the big movers in the market. Currently, shares of HUDI stock are down well more than 40% at the time of writing. In fact, at one point today, shares declined nearly 50%.
Any such significant move on a given stock is worth watching. In the case of Huadi, this move appears to be on relatively little news.
That said, as a Chinese-based maker of steel products, Huadi’s overall business appears to be one prone to volatility. Investors should keep in mind that this was a stock trading around $3 per share earlier in October. Over the past few weeks, HUDI stock exploded higher, touching $28.50 yesterday. That’s nearly a 10-bagger in the span of a few weeks.
However, there are a number of bearish catalysts taking Chinese stocks lower today. Accordingly, it appears momentum traders have swung from bullish to bearish on this stock. Given the company’s relatively small market capitalization at under $200 million, and low float, this is a stock that retail investors have been able to swing in both directions.
That said, let’s dive into a few things investors may want to know about Huadi.
What to Know as HUDI Stock Plunges Today
- As mentioned, Huadi International is a maker of steel products based out of China.
- The company went public in December of last year.
- At that time, Huadi raised $29 million from its offering on the Nasdaq.
- The company focuses on higher-end steel products, mainly in China, but also globally.
- The company has more than 400 clients, including the largest Chinese companies as customers.
- These products are used in a range of industrial sectors.
- Social media attention has recently picked up for this stock, as a potential momentum play.
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.