Stock had run up more than 1,400% in four days with no news released
Shares of Kaixin Auto Holdings Inc. plunged Tuesday, after skyrocketing 15-fold over the past four sessions, as the China-based auto-dealership company confirmed there was no news released to explain the recent volatility.
"The spike of stock price came as a surprise to people in Kaixin," the company said in an emailed statement to MarketWatch.
The stock (KXIN) dropped 43.9% on volume of 16.1 million shares in afternoon trading. The stock was halted briefly for volatility () three times in the first half-hour of trading on Tuesday.
The pullback comes after the stock soared 293.7% on record volume () of 235.3 million shares on Monday.
It ran up 55.6% on volume of 55.1 million shares on Friday, tumbled 32.8% on volume of 6.3 million shares on Thursday and soared 266.7% on volume of 60.6 million on Wednesday. In total, the stock has gained 1,409.3% over the past four days through Monday.
The company's last 6-K filing with the Securities and Exchange Commission () was on Aug. 26. At that time, Kaixin said it decided to halt its used-car dealership operations, meaning second-quarter revenue will be "significantly lower" than in prior periods, and that "it may not have meaningful revenue starting in the third quarter of 2020."
The stock closed at a record low of 41 cents on Sept. 8.
"There is no change in the status of Kaixin's business operations since the company filed the last 6-K on Aug. 23, 2020, and its dealership business is still in halt," the company said.
The stock has now climbed 144.4% year to date, while the iShares MSCI China exchange-traded fund (MCHI) has advanced 22.4% and the S&P 500 index has gained 7.1%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 20, 2020 14:53 ET (18:53 GMT)
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