GasLog Partners (NYSE:GLOP) Stock Turns Volatile: Should You Ignore?
Not too long ago, the liquefied natural gas firm GasLog Partners (NYSE:GLOP) had seen its stock go on a strong rally but it was a different story altogether on Tuesday.
The GasLog stock suffered from a massive selloff yesterday and ended the day with losses of as much as 18%. In this regard, it should be noted that up until July 26, the GasLog stock had actually been one of the notable gainers this month and had recorded gains of as much as 42.5%. So, let’s take a closer look at what caused the crash yesterday. It seems that the considerable decline in its revenues and earnings in the last reported quarter are the reasons behind the selloff in the stock.
The stock had earlier proven to be quite attractive to investors due to the dividend payouts from GasLog but in the latest quarter, that proved to be a source of disappointment. However, in the latest quarter, the company announced that the dividend payout was only going to be $0.01 per share.
The company revealed that it decided on it in order to strengthen its balance sheet at a time when coronavirus pandemic has prove to be a challenge. That proved to be another blow for GasLog and perhaps strengthened the bearish sentiments.
Market Reaction:
On Tuesday, GLOP stock slumped 18.25% at $4.30 with more than 2.77 million shares, compared to its average volume of 1.18 million shares. The stock has moved within a range of $4.0000 – 4.6800 after opening the trade at $4.53. Over the past 52-week, the stock has been trading within a range of $2.1000 – 5.9300.
