Electrameccanica Vehicles Corp (NASDAQ: SOLO) is making a run for the top in the market today. However, the company hasn’t issued any press releases or filed anything with the SEC.
Nonetheless, there’s a very good reason for the gains. Today, we’ll talk about:
- Why SOLO stock is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why SOLO Is Climbing
As mentioned above, Electrameccanica Vehicles is having a strong day in the market today, but investors are scratching their heads. The company hasn’t issued any news, either by press release or SEC filing. So, what’s the deal?
The company was the center of an analyst initiation. Early this morning, analysts at Benchmark initiated coverage on SOLO. With the initiation, Benchmark set the rating of the stock to a buy with a $6 price target.
The truth is that investors pay close attention to analyst opinions as analysts make their living as professionals in the market. So, when they have something to say, investors pay close attention.
This makes sense as well. Recently, the company’s competitors have been struggling. With slowing in NIO reported with the company’s last earnings report and Tesla’s battle with the SEC, SOLO looks like the best option in the space. With the analyst opinion providing the icing on the cake, excited investors are sending the stock screaming for the top.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. When it comes to Electrameccanica Vehicles, while the company did not release any news of its own, the analyst news is leading to the excitement.
After all, the analyst’s opinion is a buy and the price target says the at the stock could nearly double from yesterday’s close. So, it’s not surprising to see that excited investors are pushing this up.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:23), SOLO is trading at $4.55 per share after a gain of $1.13 per share or 33.63% 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 SOLO. In particular, we’re interested in watching as the company takes advantage of the blues seen by the competition in the space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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