Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an incredibly strong start to the trading session this morning, and for good reason. A recent SEC filing showed that Verizon Communications Inc. (NYSE: VZ) purchased a large stake in the company. Today, we’ll talk about:
- The stake that was disclosed this morning;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for ahead.
VZ Buys 9.3% Of HMNY Outstanding Shares
As mentioned above, Helios and Matheson Analytics saw a good spike in value early this morning extending gains that we saw on Friday after an SEC filing showed that Verizon has purchased a large percentage of outstanding shares. In the SEC filing, Verizon announced that it owns 5.10 million shares of HMNY. That works out to be a stake of about 9.3% of shares outstanding. With the filing in mind, Verizon is now the second largest shareholder in HMNY. At the moment, CEO Ted Farnsworth is the largest shareholder, with 10.5% of the company owned.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news was overwhelmingly positive. After all, if Verizon is this interested in Helios and Matheson, it’s going to cause investor interest across the board. So, it’s no surprise to see that the stock is continuing upward in the market today. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:22), HMNY is trading at $3.34 per share after a gain of $0.13 per share (4.05%) 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 HMNY. In particular, we’re interested in following the story surrounding the company’s subscriber base growth, moves in the advertising and data industries, and the company’s efforts to turn the big loss generator (MoviePass) into a profitable venture. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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