Why did these three energy stocks nosedive Tuesday?

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Why did these three energy stocks nosedive Tuesday?

 Why did these three energy stocks nosedive Tuesday?
Image source: Krisana Antharith,Shutterstock

Highlights

  • Romeo Power, Inc. (NYSE: RMO) stock was down 20.10% at 12:29 pm ET.
  • CleanSpark, Inc. (NASDAQ: CLSK) plummeted 22.40% at 12:48 pm ET.
  • Helix Energy Solutions Group, Inc. (NYSE: HLX) fell 1.22% at 1:25 pm ET.

Most energy companies are still struggling in their businesses due to the impact of the coronavirus pandemic. Although there has been some improvement in the market due to the government stimuli, energy and utility companies remained largely subdued, barring a few.

The small- and-­mid cap companies are comparatively worst affected than the bigger ones.

Here we explore three energy stocks that caught investors’ attention today.

Romeo Power, Inc. (NYSE: RMO)

The RMO stock was priced at US$4.65, down 20.10% from the previous close, at 12:29 pm ET. The company makes lithium-ion batteries for EVs. Its market cap is US$623.8 million.

The company released its second-quarter results after the market hours on Monday. Its revenue for the June quarter was US$926 thousand compared to US$1.13 million in the same quarter the previous year.

The net loss was US$28.67 million or US$0.22 per diluted share compared to the net loss of US$7.03 million or US$0.09 per diluted share in the year-ago quarter.

The stock had witnessed huge investor interest before the results on Monday.

The RMO stock decline around 79% YTD.

Also Read: What first-time investors should know before investing in stocks

Source – pixabay

Also Read: Check out these top three Nasdaq gainers Monday

CleanSpark, Inc. (NASDAQ: CLSK)

The stock of this energy company was trading at US$10.655, down 22.40%, at 12:48 pm ET.

Its market cap is US$372.6 million. The company explores clean energy solutions.

In the third quarter ended June 30, 2021, the company generated revenue of US$11.9 million compared to US$3.43 million in the June quarter of 2020.

The net loss was US$ 16.68 million or US$0.49 per diluted share compared to the net loss of US$8.55 million or US$0.77 per diluted share in the previous year’s third quarter.

The stock closed at US$13.73 on Aug 16, 2021, with a trading volume of 1,442,747 shares.

CleanSpark stock fell 62.56% return YTD.

Also Read: Six hot beauty stocks to keep an eye on this fall

Helix Energy Solutions Group, Inc. (NYSE: HLX)

The HLX stock was trading at US$3.655, down 1.22%, at 1:25 pm ET. The company provides specialty services to the offshore energy industry. It has a market cap of US$544 million, and a P/E ratio of 45.13.

The revenue for the June quarter was US$161.9 million compared to US$199.1 million in the same quarter of 2020. The net loss for the quarter was US$13.68 million or US$0.09 per diluted share compared to a net income of US$5.45 million or US$0.04 per diluted share a year ago.  

The share volume on Aug 16 was 1,433,960, with US$3.7 apiece at the close.

Its YTD return fell 13.33%.

Also Read: 7 sports stocks to explore as the Olympic spirit lives on

Bottomline

The energy sector was severely hit in the pandemic last year. However, in 2021, it has witnessed some improvement due to vaccinations and demand. Still, it has a long way to go before the market stabilizes.

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