Eros STX Global Corp (NYSE:ESGC) has had a pretty hard time in the capital markets in recent weeks and the patter continued on Wednesday as investors continued to engage in a selloff in the company’s stock.
The Eros STX stock decline by as much as 20% yesterday due to the selloff and that took the cumulative decline over the course of the past month to as much as 50%. However, at the same time, it should be noted that the trading volumes in the stock had been quite high. The selloff in the stock has been triggered by an announcement from the company earlier on in the month that might have spooked investors.
Earlier on in the month, it emerged through a press release and a filing to the United States Securities and Exchange Commission that Eros STX was going to implement a plan for the purpose of restructuring its debts. However, that was not all.
The company also warned that it was going to be delayed with regards to the announcement of the financial results for the quarter that ended on March 31, 2021. Such announcements can often lead to panic selling and that is exactly what happened with the Eros STX stock.