Why did Imperial Petroleum (IMPP) stock surge over 344% in a month?

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Why did Imperial Petroleum (IMPP) stock surge over 344% in a month?

Imperial Petroleum Inc. (NASDAQ: IMPP)
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Highlights:
  • The IMPP stock surged over 42% in the previous week.
  • The company's revenue decreased by 29.3% YoY in Q3, FY21.
  • For the nine months ended on September 30, 2021, the company's revenue decreased by 8.8% YoY.

The stock of Imperial Petroleum Inc. (NASDAQ: IMPP) is among the trending stocks on Wall Street Monday, evident by the rally in its prices.

The IMPP stock price surged over 39% in the pre-market trading session on March 7.

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Imperial Petroleum (IMPP) performance

Why is it rising?

The Indiana-based shipping transportation firm, specializing in transporting petroleum and petrochemical products in liquid forms, appears to be trending in the market in recent days.

The company has maintained a steady momentum in recent weeks, with its closing price of Friday increasing over 53%.

Though there is no company-related news or filings from the company for its unexpected price surge, it is expected that some external factors may have bolstered gains in it.

Some market analysts suggested that the escalating geopolitical tensions in one of the prime reasons for its rally.

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As Russia faces tough sanctions over petroleum, oil, and natural gas, the IMPP stock made gains. Even though it is not yet clear how the company will benefit from it, the investors are piling around the stocks.

Some believe it is the latest meme stock that the investors are discussing amid the increasing oil prices. Various investors on social platforms have cited a low-float and short squeeze opportunity on the IMPP stock.

In addition to that, the lower prices of the stock, compared to its competitors, may also have helped in the recent gains. Although the stock has been rising since the sanctions against Russia, a direct relation between the two cannot be matched yet.

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Bottom line:

The IMPP stock traded at US$4.71 at 8:20 is ET on March 7, up 39.35% from its previous close of US$3.38. The IMPP stock price rose 42.62% in the last week, while in the past 30 days, its price skyrocketed 344.73%.

Its average share volume for the last five days was 100,403,734.

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In the third quarter of fiscal 2021, the company's revenue decreased by 29.3% YoY to US$4.1 million, while its net loss came in at US$0.9 million. For the nine months ended on September 30, 2021, the company's revenue decreased by 8.8% YoY to US$13.4 million.

However, the stock of Imperial Petroleum (IMPP) has been highly volatile in recent weeks, and the recent rally doesn't signify the stocks' performance in the long run. So, an investor should carefully evaluate the company before spending on the stocks.

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