What’s going on with Cenntro Electric (NASDAQ:CENN) stock right now? Today, shares of the electric vehicle (EV) company closed higher by more than 25% on seemingly no company-specific news.
Source: Cenntro Automotive
As a refresher, Cenntro Electric rebranded from the Naked Brands name just last year after merging with Cenntro. Afterwards, the company ticker changed from NAKD to CENN.
So, why exactly is CENN stock trading higher today? Here’s what investors should know about Cenntro Electric moving forward.
Why Is CENN Stock Up Today?
Upon closer inspection, it seems like retail investors may be behind CENN stock’s price action today. ApeWisdom reports that during the past 24 hours, mentions of the EV company have risen by 1,300%. On Stocktwits, message volume involving the CENN stock ticker has also almost doubled since March 14.
Furthermore, as a penny stock trading under a $1 billion market capitalization, the stock is susceptible to quick, volatile price movements. The retail crowd also has a tendency to lean towards penny stocks, as cheap prices draw in investors seeking large returns.
CENN stock’s trading volume was extremely high today as well, coming in at nearly 58 million shares. That’s more than five times the average daily trading volume of 8.43 million shares.
Finally, in recent news, Cenntro reported earlier this month that it had acquired a majority interest in Tropos Motors Europe (TME). The company paid 3.25 million euros ($3.58 million) for a 65% equity interest. TME operates as a light EV distributor and assembler. It also has a “distribution network of 50 dealers in Germany and 13 importers in Europe across sixteen countries, including France, Spain, Portugal, the Netherlands” and elsewhere. The transaction is expected to close by the end of March.
Who’s Betting Big on Cenntro Electric?
Although Cenntro Electric is proving popular with the retail crowd today, the company doesn’t seem to be as popular among institutional investors. According to 13F forms, 40 funds currently hold CENN, a decrease of 16 funds from the prior quarter. In addition, no funds hold CENN stock as a top 10 position.
So, who are some of the largest shareholders of Cenntro Electric? Let’s jump right in.
- China Leader Group: 20.9 million shares or 2.3% ownership.
- Morgan Stanley (NYSE:MS): 316,585 shares or 0.03% ownership.
- Paloma Partners: 212,414 shares or 0.02% ownership.
- Qube Research & Technologies: 66,676 shares or 0.007% ownership.
- Geode Capital Management: 31,347 shares or 0.004% ownership.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Read More: 5 Investors Betting Big on Cenntro Electric (CENN) Stock
