Data Storage Corporation (DTST) Stock Continues to Slump: Down 455 in a Week
Information technology solutions company Data Storage Corporation (NASDAQ:DTST) has seen its stock suffering from a considerable selloff over the past week and has tanked by as much as 44% during the period.
The decline in the stock might be related to the announcement last week from the company with regards to the receipt of as much as $2.1 million in net proceeds through the exercise of warrants. Data Storage Corporation announced that the amount was received from the voluntary exercise of warrants that had been issued by the company during its round of financing back in May earlier on this year.
However, the announcement, which was made on July 9, did not go down particularly well with shareholders and the Data Storage Corporation stock suffered from a heavy selloff. At the time, the Chief Executive Officer of the company Chuck Piluso spoke in glowing terms about the development.
He stated that it reflects the ‘tremendous support’ that the company has got from its shareholders. He went on to add that the infusion of this fresh capital is going to help in further strengthening Data Storage Corporation’s balance sheet. It now remains to be seen if this dip in the stock turns out to be an opportunity for investors or not.’ Market Reaction:
On Tuesday, DTST stock fell 12.64% at $7.12 with more than 488k shares, compared to its average volume of 1.04 million shares. The stock had moved within a range of $6.95 – 8.26 after opening the trade at $8.04. Over the past 52-week, the stock has been trading within a range of $0.12 – 13.10.
