Suffice it to say that there’s fast action with Fast Radius (NASDAQ:FSRD) stock today. It’s unusual, though, as there wasn’t any notable company-specific news for Fast Radius this morning. There was a significant development a couple of days ago, however. Reportedly, the company received approval for Fast Radius’s proposed sale and marketing procedures.
Chicago-headquartered Fast Radius is a small cloud manufacturing and digital supply chain business. The company’s software applications and supply-chain solutions benefit engineers and manufacturers.
It appears that Fast Radius is undergoing Chapter 11 proceedings but may be the target of an acquisition, or at least strategic investments. Two days ago, the United States Bankruptcy Court for the District of Delaware approved Fast Radius’s proposed sale and marketing procedures. The approval included a bid deadline of Dec. 5, 2022.
In other words, Fast Radius was able to clarify its timeline for a potential buyout. The financial markets dislike uncertainty, so it’s understandable if some traders are pleased with this development.
What’s Happening With FSRD Stock?
Actually, “pleased” might not be the right word. A better descriptor would be “euphoric” as FSRD stock literally doubled in price this morning.
The shares were up 100% soon after the opening bell rang on Wall Street and even continued to push higher an hour later. However, investors should put today’s price action into perspective.
After all, FSRD stock started 2022 at around $10. So, even a share-price doubling doesn’t make up for long-term investors’ steep losses.
Also, it might seem odd that the shares would double in value two days after Fast Radius’ announcement. Sure, it’s encouraging that Fast Radius is “in active discussions with one or more potential partners,” with a potential bidder (if there is one) to be named by Nov. 23 and to establish a possible bid deadline of Dec. 5, 2022.
The delayed reaction in FSRD stock is unusual, and may signal meme-stock trading action or something else. So, stay tuned for further developments and be cautious as the price moves in Fast Radius shares are likely to be fast, but also unpredictable.
On the date of publication, David Moadel 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.
