It was a fairly good day in the markets for investors in Cenntro Electric Group Limited (NASDAQ:CENN) as the company’s stock garnered considerable attention and ended the day with gains of as much as 6.5%.
Trading Data
On Friday, CENN stock increased 6.58% to $1.62 with more than 3.56 million shares, compared to its average volume of 10.05 million shares. The stock moved within a range of $1.5200 – 1.6400 after opening trading at $1.52.
Cenntro Electric Group Expands Global Production Capacity with Acquisition of Advanced Manufacturing Facility in China
The rally in the stock came about after the electric vehicle technology company made a major announcement on Friday. The company announced that it had been successful in completing the acquisition of a new manufacturing plant located in Changxing in Huzhou City in China. Cenntro Electric Group paid around $19.5 million for the acquisition of the manufacturing facility.
In this situation, it is necessary to note that the new manufacturing facility spans across an area of 474000 square feet and it is going to allow Cenntro Electric Group in expanding its production capabilities considerably. Hence, it is perhaps easy to see why the stock rallied so strongly back on Friday.
However, it is now going to be interesting to see if the stock can actually manage to hold on to its momentum this week and add to its gains over the course of the coming days. The facility is expected to provide the company with advanced capabilities with regards to manufacturing processes as well.
Key Quote
“This is a critical acquisition for Cenntro. The new facility will allow us to expand and respond to the growing demand for our products, especially as we begin distributing into new markets,” said Peter Wang, Chairman and CEO.
Technical Data
CENN stock is trading below the 50-Day and 200-Day Moving averages of $1.64 and $1.76 respectively. Moreover, the stock is trading below the 20-Day moving average of $5.77.
