Oil transportation company Imperial Petroleum (NASDAQ:IMPP) was the unassuming winner of this Wednesday’s geopolitical developments. Today, IMPP stock skyrocketed nearly 40% on news of worsening sanctions against Russia.
What do you need to know about Imperial in the wake of its massive jump?
Well, as Congress drafts a bill to ban imports of Russian petroleum, oil and natural gas, IMPP shares are seeing unexpected gains. While it’s unclear exactly how Imperial directly benefits from the increasingly vigorous U.S. sanctions, investors clearly couldn’t care less.
Some believe Imperial Petroleum is simply the latest meme stock gaining momentum, perhaps justifiably. Shares of the company have soared since mid-February with little explanation. From 49 cents per share on Feb. 18, today IMPP stock trades for around $2. That represents a whopping 300%-plus increase.
IMPP Stock Sees New Highs Amid Russian Oil Strife
What’s behind IMPP’s latest resurgence?
When it comes down to it, Imperial Petroleum appears to be a beneficiary of the meme-craze that took over a number of stocks last year. The company is trading at a substantial premium compared to its competitors for little reason. While there is some speculation the company is benefitting from increasing sanctions against Russia, a noticeable direct tie between the two is currently lacking.
IMPP stock has been remarkably volatile this month. In just the past week, the company has gone up and down seemingly at will. After hitting a Feb. 28 high of $2.82, the stock dipped back down to around $1.50 before today’s jump. The company may well stay in flux as the Russia-Ukraine conflict continues to unfold. Investors across the globe are following the oil industry closely as sanctions continue to come down on Russia.
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On the date of publication, Shrey Dua did not hold (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.