Vertex Energy, Inc. (VTNR) stock is down -12.65% in early trades today at $2.0789, and it’s happening in absence of any significant related news.
In the last few days, no analyst has upgraded this environmental services and industrial waste management company. Vertex Energy has not reported earnings yet. There seems to be no news in and of it driving the stock’s move higher… until we look a bit deeper and take a step back.
Why is the stock falling?
The Houston-based company is an alternative feedstock specialized refiner and a marketer for high-purity petroleum products. Vertex is one of the many large refiners of used motor oil in the U.S. The company has facilities in Marrero (LA), Heartland (OH), and in Texas at Houston and Port Arthur.
The official note to Vertex Energy recently arrived from the Listing Certification Division of the Nasdaq Stock Market. NASDAQ informed the firm of the extension of the 180-day implementation duration or until 28 June 2021. Vertex Energy was therefore enabled to regain compliance through the provision of share at least $1.00 with the Nasdaq Marketplace Rule 5550 (a) (2). Where the bid rate of the Company’s common stock closes for at least 10 consecutive trading days, at or above $1.00 per share, by June 28, 2021, which will make the company recover conformity and the matter will stand closed.
So it’s been a good week for Vertex Energy shareholders, because the stock rose 46.01% on Tuesday reaching $2.38, marking the seventh consecutive trading day above the required mark. And the organization is set to meet its compliance target this week at this point.
For the company’s most recent quarterly earnings, overall, the findings appear to have been pretty good. While sales of $37 million meet analysts’ estimates, the statutory losses were considerably lower than expected. Vertex Energy lost $0.10 per share in that quarter.
In absence of any directly related news, the significant fall of Vertex Energy, Inc. (VTNR) stock could be attributed to investors’ optimism in the company’s stock to be coming out of the NASDAQ’s danger-zone this week, raising its price above the mark for few days. But that sentiment is taking its toll today with profit-taking.