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Summary
- Clover Health and Wendy’s stocks rallied as much as 109 percent and 28 percent, respectively.
- Lordstown Motors shares are declining as the automaker doubts if it can continue as a going concern.
Stocks of Clover Health Investments, Corp. (NASDAQ:CLOV) and The Wendy’s Company (NASDAQ:WEN) jumped 109 percent and 28 percent, respectively, while Lordstown Motors Corp. (NASDAQ:RIDE) plunged as much as 23 percent in Tuesday’s trading.
Clover Health and Wendy’s rallied as retail investors turned bullish on Reddit’s WallStreetBets forum. Lordstown’s stock also surged in the afternoon but ended up 6 percent down in the aftermarket session after the company flagged concerns regarding its ability to continue as a going concern.
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Clover Health Investments Corp.
The Tennessee-based healthcare technology company provides a national health insurance program Medicare. Clover Health became a public company on NASDAQ after merging with a special purpose acquisition company in January. The stock gained 44 percent since it started trading on January 8.
The company recently reported a 21 percent year-over-year growth in its first total revenue to US$200.3 million. Adjusted EBITDA loss came in at US$52.1 million.
For the full year, Clover Health projects total revenues between US$810 million and US$830 million. Adjusted EBITDA loss is anticipated between US$240 million and US$190 million.
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The Wendy’s Company
Wendy’s market capitalization stood at US$6.39 billion on Tuesday evening. The stock is up 31 percent year to date and rose 27 in the last one year period. It has a 52-week trading range of US$18.86 to US$29.46.
A couple of weeks ago, the Ohio-based restaurant chain lifted its 2021 outlook after reporting its first-quarter results. The company now projects its global system-wide sales to grow up between 8 percent and 10 percent. Full-year adjusted EPS is expected in the range of 72 cents to 74 cents.
Wendy’s saw its global system-wide sales grow at 12.5 percent in the first quarter ended March 31. Adjusted EPS soared to 20 cents while total revenues rose to US$460.2 million.
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Source: Pixabay
Lordstown Motors Corp.
The light commercial electric trucks startup on June 8 flagged concerns over its ability to continue operations as the company do not have the required capital to implement its business plans.
In an SEC filing, Lordstown said it doubts its ability to continue as a going concern. The Ohio-based company, which said there could be no assurance on accessibility to additional funds, also warned of adverse effects on its financial condition.
Lordstown has been planning to commence its Endurance electric pickup truck production in the second half of 2021. However, in May, Lordstown more than halved its Endurance production target for the year to around 1,000 units, citing significantly higher-than-expected costs for equipment, shipping, and engineering resources.
Lordstown Motors has a market capitalization of US$1.98 billion. Its stock has lost approximately 46 percent since the company became public through a merger with SPAC in October 2020.
