Medley Management ‘not aware’ of reason behind stock skyrocketing on heavy volume

Shares of Medley Management Inc. blasted off on heavy volume Monday, prompting the alternative asset management company to respond by saying it couldn’t explain the “unusual’ activity.

The stock
had shot up as much as 365% in morning trading, before paring some gains to be up 155% in the afternoon, prior to its latest trading halt. Trading volume was 41.0 million shares, compared with the full-day average of about 341,500 shares.

At current levels, the stock was on track to close at the highest price since March 10.

In light of the “unusual trading activity” in its stock, Medley issued the following statement:

“While the company does not normally comment on market activity, the company confirms that it is not aware of any undisclosed material change in the business, operations or affairs that would accord for the recent increase in trading activity and related increase in trading price.”

The stock was halted for volatility from 9:35 a.m. Eastern, and didn’t resume trading until 2:04 p.m., but was halted again seconds later.

It resumed trading at 2:09 p.m., was halted again less than a minute later, before resuming trading at 2:15 p.m. It was halted again for volatility at 2:17 p.m.

The stock is headed for just the third close above the $1 mark since the end of March. Despite the day’s surge, it has still lost 49% year to date, while the S&P 500 index SPX has advanced 9.8%.

Source link