Whenever a stock manages to deliver major gain over a short period of time, there is always the possibility of it declining sharply due to profit taking and that is what happened with the Exela Technologies (NASDAQ:XELA) stock on Thursday.
Due to a bout of profit taking yesterday, the stock declined by as much as 11%. However, at the same time, it should be noted that over the past week it is still up by 60%. In light of the decline, it might be a good time to figure out if it might be a good time to get into the stock.
The Exela stock soared after the company completed its at the market offering recently and managed to raise as much as $100 million in order to take care of its operations.
However, that is not all. Earlier on in the week the company announced that it is looking to raise another $150 million. Exela revealed that it wants to use the proceeds for general corporate spending. In this regard, investors also need to note that the dismissal of a class action lawsuit against Exela for postponing its annual report for 2019 could also be a factor behind the recent optimism around the stock.
Market Reaction:
On Thursday, XELA stock fell 11% to $2.12 with more than 86.70 million shares, compared to its average volume of 16.20 million shares. The stock has moved within a range of $1.9700 – 2.2400 after opening the trade at $2.19. Over the past 52-week, the stock has been trading within a range of $0.9900 – 7.8200.
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