ACY Stock's 'Unusual  Activity' Holds Markets' Attention

Summary

• Stocks of AeroCentury Corp (NYSE: ACY, ACY:US) skyrocketed by about 415 per cent on Monday, following which they dropped by over 36 per cent on Tuesday.
• The massive jump in its stock price on Monday led to the New York Stock Exchange halting its trading on Monday.
• Later on Monday, AeroCentury announced the NYSE has accepted its plan to remain listed on the stock exchange.

Stocks of aircraft operating lessor AeroCentury Corp (NYSE: ACY, ACY:US) dropped over 36 per cent on Tuesday, December 29, after the scrips zoomed by about 415 per cent on Monday.

AeroCentury stocks were priced below US$ 3 last week (December 24) before jumping to a record high of US$ 13.8 on Monday.

The massive jump in its stock price on Monday was termed as “unusual market activity”, following which the New York Stock Exchange halted the trading of AeroCentury’s stocks on Monday. The company soon after released a statement saying that it was not aware of any kind of “undisclosed material change or development” in its business and operations that could lead to the stock price jump.

The stocks are currently trading at US$ 8.81 and have a 10-day average trading volume of 4.7 million.

Later on Monday, AeroCentury announced the NYSE has accepted its plan to remain listed on the stock exchange, after the company was handed a deficiency letter back in September, which outlined details about why AeroCentury did not comply with NYSE’s listing standards.

Following the acceptance of its plan, AeroCentury now has a deadline of  March 11, 2022, to meet NYSE’s listing standards.

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AeroCentury Latest Financial Statement

AeroCentury saw its net loss lessen on a year-over-year level, down from US$ 8.2 million in Q3 2019 to US$ 4.1 million in the latest third quarter of 2020.

The aviation sector has been decimated by the coronavirus pandemic this year, and this crisis reflected in AeroCentury’s latest quarterly report. AeroCentury saw its total revenues in Q3 2020 consist mostly of operating lease revenue, which dropped 52 per cent year-over-year and 26 per cent quarter-over-quarter to US$ 3.2 million. The decrease, the company said, was caused by the drop in the rent revenue for two of its assets sold in October 2020. 

AeroCentury’s total operating expenses fell by 64 per cent QoQ and a whopping 80 per cent YoY to US$ 7 million in the third quarter of 2020.