Actions of Eastman Kodak (NYSE: KODK) fell on Friday after increasing up to 28 times in value earlier in the week. At the close of trading, Kodak’s stock was down 27%.
Eastman Kodak shares jumped on Tuesday and Wednesday after the company said it would receive a $ 765 million loan under the Defense Production Act to produce pharmaceutical ingredients linked to the coronavirus. Traders took Kodak shares from a closing price of $ 2.10 on Friday July 24 to $ 60 on Wednesday.
Since that time, critics have wondered why the Trump administration gave the loan to Kodak, which is still primarily a tech company, rather than giving it to a pharmaceutical company. Skeptics have also questioned unusual trading activity in Kodak shares before the loan was announced, and whether the information was disclosed or traded by insiders.
Kodak’s incredible rise was shocking. But after his incredible gains, it should come as no surprise that traders are taking profits. Many investors think Kodak stocks have gone too far and too fast, and some short sellers even bet against Kodak stocks.
Investors should expect Kodak shares to remain extremely volatile in the days ahead.