Over the course of the past week, the Gold Resource Corporation (NYSEAMERICAN:GORO) stock has been in the middle of a steady selloff and has gone down by as much as 4% during the period as a consequence.
Trading Data
On Friday, GORO stock fell 1.27% to $1.56 with more than 1.49 million shares, compared to its average volume of 851K shares. The stock has moved within a range of $1.5000 – 1.5900 after opening trade at $1.58.
Recent News
In this situation, it ought to be mentioned that there has not been any news about the company in recent days and hence, the decline might surprise some investors. However, in this situation, it may be a good idea for investors to consider taking a look at the announcement from the company back on December 10 last year.
At the time it was announced that the company completed a statutory plan of arrangement with Aquila Resources Inc as per the provisions of the Business Corporations Act. Following the closure of this agreement, Aquila was acquired by Gold Resource Corporation through its fully owned subsidiary company Gold Resources Acquisition Sub Inc.
The transaction was completed through the acquisition of all outstanding and issued shares of Aquila. In this regard, it should be noted that the shareholders in Aquila had already approved the transaction back on November 17, 2021. That being said, it is still difficult to say if that transaction was the reason for the decline in the Gold Resource stock or not.
Technical Data
GORO stock is trading below the 20-Day and 50-Day Moving averages of $1.69 and $1.85 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.16. The stock is down 18% in the past month.
