China XD Plastics Company Ltd (NASDAQ:CXDC) jumped 35.5% and up 185% in a week after investors became keener on the stock’s price action. On Friday, there was heavy trading on CXDC, with the stock gaining 22% despite no news about the company that could have resulted in the surge.
Although speculation might have resulted in the pop, traders and investors need to be keen on the company’s operations. The company deals with modified plastics’ development, manufacture, and sales and conducts its business through several subsidiaries.
The plastics the company produces are for automotive applications markets in UAE and China. In May this year, the company received a notice regarding the delayed filing of financial results for the quarter ending March 31, 2021. Therefore, investors have a sharp focus regarding this stock, resulting in a surge in price. Following this recent rally, investors need to be keen on the CXDC and watch its movement in the coming weeks.
Market Reaction:
On Monday, CXDC stock surged 35.50% at $1.05 with more than 22.53 million shares, compared to its average volume of 2 million shares. The stock has moved within a range of $0.7100 – 1.0800 after opening the trade at $0.76.
