Pyxus International, Inc. (NYSE: PYX) is having yet another strong start to the trading session in the pre-market hours this morning. While the company hasn’t issued any news via press release or SEC filing, there’s a good reason for the gains. Today, we’ll talk about:
- Why PYX is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why PYX Is Headed Up
As mentioned above, Pyxus International is having a strong start to the trading session this morning. However, if you go digging, you’re not going to find any news released by the company. Nonetheless, there’s a good reason for yesterday’s gains and today’s follow through.
The reason… Citron Research, an analyst firm known for short-side opinions, has weighed in on PYX. This time however, they had a positive view. In a recent tweet, Citron had the following to offer:
$PYX would not short…speculative long. Real management and tight float. The stock could double from here as long as investors are Cannabis crazy. Our favorite hire..and it wasn’t last week. https://t.co/mPdfuGBVJe
— Citron Research (@CitronResearch) October 8, 2018
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Pyxus International, the news proved to be overwhelmingly positive. After all, Citron is a well-known firm, best known for bearish opinions. So, when they come out with a bullish view on a stock, it’s something that the investing community is going to pay attention to. It’s not surprising that after the bullish note, the stock closed up more than 30% yesterday and is up this morning as well. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. Currently (6:48), PYX is trading at $31.20 per share after a gain of $3.02 per share or 10.72% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PYX. In particular, we’re interested in following the story surrounding the company’s cannabis growth in Canada as well as their continued supply of tobacco to the cigarrette industry. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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