Yellow (NASDAQ:YELL) stock is falling on Thursday as reports claim that the transportation company is preparing to file for bankruptcy.
According to these reports, Yellow may seek bankruptcy protection as soon as this week. Yellow was already bailed out once by the U.S. government back in 2020 through a $700 million pandemic relief loan.
Also not helping out Yellow is ongoing negotiations with members of the Teamsters union. That is affecting its business negatively. Also, some customers are pausing shipments to the U.S. trucking company as they fear an upcoming bankruptcy filing could result in lost wares.
When Reuters asked Yellow about a potential bankruptcy filing, the company gave the outlet this statement:
“As previously stated, in keeping with the fiduciary responsibility of the company’s executives, the company continues to prepare for a range of contingencies.”
What This Means for YELL Stock
A bankruptcy filing would be bad news for investors in YELL stock. It would no doubt cause the company’s shares to lose value. If the filing is received negatively enough, it could also result in shares being delisted from the Nasdaq.
With today’s news comes strong trading of YELL stock as investors sell shares. As of this writing, more than 500,000 shares have changed hands. For the record, its daily average trading volume is about 2 million shares.
YELL stock is down 26.5% as of Thursday morning.
Investors looking for more of the most recent stock market news today are in the right place!
We have all of the biggest stock market stories that traders need to know about on Thursday! A few examples include why shares of Lipocine (NASDAQ:LPCN) stock and Celestica (NYSE:CLS) stock are rising today, as well as the biggest pre-market stock movers this morning. All of this news is ready to go at the links below!
More Thursday Stock Market News
- Why Is Lipocine (LPCN) Stock Up 32% Today?
- Why Is Celestica (CLS) Stock Up 30% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
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On the date of publication, William White 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.
