SmileDirectClub (NASDAQ:SDC) stock is taking a beating on Tuesday as the company’s shares continue to fall on a bankruptcy filing.
SmileDirectClub announced the bankruptcy yesterday and said it’s undergoing this action to enact a recapitalization transaction. This has it securing an additional $20 million in funds from the company’s founders. It could also see those funds reach $60 million if certain market goals are met.
With that news, yesterday came a major drop in SDC stock. The company closed out Monday with shares down 61.2%. That came alongside some 54 million shares changing hands. For comparison, its daily average trading volume is about 3 million shares.
It looks like that negative movement is going to continue on Tuesday as investors continue to sell their stakes in SmileDirectClub. That has more than 2.2 million shares of the company’s stock traded during pre-market hours.
What’s Next for SDC Stock?
Considering the drop in price and plans to come out of its bankruptcy, it’s possible retail investors might take this as a chance to invest in SDC stock. However, it’s unclear if these would be long-term investments or simple pump-and-dumps to cash in on the chaos.
To go along with that, investors could see a short squeeze of SDC stock in the coming days. That follows a report yesterday that there were no shares of SDC stock left to short.
SDC stock is down 25.3% as of Tuesday morning.
There’s plenty more stock market news traders will want to read about below!
We’re offering up all of the hottest stock market coverage investors need to know about on Tuesday! That includes everything happening with shares of Aerwins Technologies (NASDAQ:AWIN) stock, AgileThought (NASDAQ:AGIL) stock, and VIQ Solutions (NASDAQ:VQS) stock today. You can catch up on these matters at the following links!
More Stock Market News for Tuesday
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- Why Is VIQ Solutions (VQS) Stock Up 57% Today?
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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.
