Yellow (NASDAQ:YELL) stock is rocketing higher on Monday even as investors prepare for the company to file for bankruptcy.
The idea of yellow filing for bankruptcy isn’t new, as reports about it doing so started to spread last week. However, a major change came over the weekend as the U.S. trucking company laid off hundreds of employees over the weekend and ceased operations on Sunday.
All of this is further evidence that a bankruptcy filing is coming from Yellow. Now investors are just waiting to see when that will happen. Considering these recent events, that filing will likely come sometime this week.
Sean M. O’Brien, the General President of Teamsters, a union that works with Yellow, said this about the news to the Associated Press:
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry.”
What’s Next for YELL Stock
Investors shouldn’t expect YELL stock to stick around for too long. The layoffs, ceasing of operations, and pending bankruptcy filing all point toward the delisting of the shares. Today’s movement is likely only traders trying to pump and dump the stock on news in hopes of profiting, and it shouldn’t be taken as a long-term investment.
Heavy trading today has some 79 million shares of YELL stock on the move. For the record, its daily average trading volume is about 2.6 million shares. YELL stock is up 111% alongside all of this movement as of Monday morning.
Investors looking for more of the hottest stock market news on Monday will want to keep reading!
We’ve got insight into all of the latest stock market stories worth reading about today. A few examples include why shares of Xpeng (NYSE:XPEV), Faraday Future (NASDAQ:FFIE), and Carvana (NYSE:CVNA) stock are moving today. You can read up on all of these matters at the links below!
More Stock Market News for Monday
- Why Is Xpeng (XPEV) Stock Down 14% Today?
- Why Is Faraday Future (FFIE) Stock Up Today?
- CVNA Stock Price Prediction: Is Carvana Really Worth Just $30?
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On the date of publication, William White 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.
