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Kodak surges 34% after skyrocketing 1,200% in 2 days

Jul 30, 2020, 21:27 IST
Business Insider
Reuters / Brendan McDermid
  • Kodak's share price jumped as much as 34% on Thursday as traders continued to cheer its $765 million government loan to make drug ingredients in response to the pandemic.
  • The camera company's stock skyrocketed about 1,200% in two days this week, boosting its market capitalization to $2.6 billion from under $150 million.
  • The breathless rally on Wednesday caused the New York Stock Exchange to halt trading 20 times, CNN said.
  • Robintrack data indicates that Robinhood traders are snapping up Kodak. The number of accounts holding the stock soared to more than 119,000 on Wednesday from under 10,000 on Monday.
  • Visit Business Insider's homepage for more stories.
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Kodak's stock spiked as much as 34% on Thursday as traders continued to celebrate it securing a $765 million government loan to make drug ingredients in response to the coronavirus pandemic.

The camera company's share price skyrocketed from $2.62 at the close of trading on Monday to $33.20 at Wednesday's close, an increase of roughly 1,200%. It traded as high as $44.44 on Thursday.

The stock rose to as high as $60 on Wednesday, boosting Kodak's market capitalization to $2.6 billion from below $150 million.

The New York Stock Exchange halted trading of Kodak shares 20 times on Wednesday, CNN reported, as automated "circuit breakers" designed to combat extreme stock-price swings were repeatedly tripped.

Read more: GOLDMAN SACHS: Buy these 26 stocks now to crush the market as an 'overvalued' dollar continues to weaken in the months ahead

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The excitement about Kodak stock has driven trading volumes up from about 1.6 million on Monday to more than 270 million on both Tuesday and Wednesday, Yahoo Finance data shows.

Robinhood traders are among those piling into Kodak stock. The number of accounts on the trading app holding the stock has increased more than twelvefold, to north of 119,000 from under 10,000 on Monday, according to Robintrack.

Kodak CEO Jim Continenza is poised to be one of the big winners from the rally. He owns 650,000 Kodak shares, 3.8 million stock options, and phantom stock that could net him more than $135 million.

Read more: Millions in profits and 5,429 units: Why Ryan Gibson is going all in on storage-unit investing after years of flipping homes — and the strategy he's using to capture the booming trend

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