Yellow (NASDAQ:YELL) stock is still worth checking on today as it gets a major investment from hedge fund MFN Partners.
A filing with the Securities and Exchange Commission (SEC) reveals that MFN Partners has acquired a 24.6% stake in the failing trucking company. That’s big news as reports claim Yellow isn’t far off from filing for bankruptcy.
Adding to that are recent actions from the company that point toward a bankruptcy filing. Among them are laying off hundreds of workers, as well as it ceasing operations over the weekend. Neither of those are positive signs for the U.S. freight company.
Why Invest In YELL Stock?
Clearly, MFN Partners believes there’s still some potential to be had in holding YELL shares. And it’s not the only institutional investors that think so. InvestorPlace’s Samuel O’Brient highlighted that Rhumbline Advisers and Dimensional Fund Advisors LP also increased their stakes in the troubled company in 2023.
With these investments, some traders are seeing YELL stock as worth taking a chance on. That’s inspired heavy trading of the stock today as investors buy shares. This has more than 123 million shares on the move as of this writing. For the record, its daily average trading volume is about 5 million shares.
YELL stock is up 65.3% as of Tuesday morning.
Investors seeking out more of the most recent stock market news for Tuesday are going to want to keep reading!
We have all of the hottest stock market stories that traders will want to read about today! Our coverage includes why shares of QuantumScape (NYSE:QS) stock, American Superconductor (NASDAQ:AMSC) stock, and Overstock (NASDAQ:OSTK) stock are moving today. All of that news is available at the following links!
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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.