SOS Limited (NYSE:SOS) Stock Slumps 35% In a Week: Here is Why
While it is true that many cryptocurrency mining stocks have come into sharp focus in recent days owing to the crypto rally, the situation was quite different for SOS Limited (NYSE:SOS) over the past week.
Market Stats
On Monday, SOS stock closed lower by 3.85% at $1.50 with more than 17.10 million shares, compared to its average volume of 13.56 million shares. The stock has moved within a range of $1.4800 – 1.6000 after opening trading at $1.56.
Major News
The cryptocurrency miner saw its stock come under considerable selling pressure during the period and has clocked a decline of as much as 35%. There stock had earlier hit highs of as much as $15.88 a share this year but since then it has declined by as much as 90%. The decline over the past week has possibly been brought about by the decision from SOS Limited to have a private placement that is going to be made directly to certain investors.
However, the move seems to have been given the thumbs down by investors and it is going to be interesting to see if the SOS Limited stock can actually manage to make a comeback. However, in this regard, it is also important for investors to keep in mind that the private placement in question is expected to raise as much as $90 million in the form of fresh capital. The money is going to be deployed by the company towards future growth.
Traders Corner
SOS stock is trading below the 20-Day and 50-Day Moving averages of $2.01 and $2.27 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.81. The stock is down 29% in the past month.
