Kodak stock surged over 76% on Wednesday on the back of news that the company mishandled the CEO’s stock grants before it announced its $765 million government loan. Kodak’s lawyers maintained their stance that the company didn’t violate any security regulations; however, the investigation into any wrongdoing is in process by the same U.S. agency which awarded the loan.
In August, Kodak won a government loan to produce ingredients used in critical generic medicines to combat the coronavirus. The International Development Finance Corporation confirmed in a tweet on August 7 that “recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared.”
Kodak’s board has been cooperating with the U.S. Security and Exchange Commission and Congress’s investigation. The SEC has continued its investigation into whether Kodak had broken any security law by leaking information to a news outlet before it informed investors.
Kodak’s lawyers said in a statement on Tuesday, “The manner in which the options grants were awarded was sub-optimal in a number of respects.”
Kodak Stock Price
Kodak’s share price is up over 111% this year, and the stock has surged 249% over the past 52 weeks. Kodak shares closed at $6.23 yesterday and opened at $9.44 and made a high of $11.44 at the time of writing this report. That is a surge of nearly 72%. In July, Kodak shares made a high of $60.
Kodak’s trading volume was 16% above the 20-day average. One-month implied volatility was near 228%. Insiders still hold a 7.4% stake in the company, and over the past six months, they have increased their stake by 4.8%, according to Bloomberg data.
Kodak’s share price dropped over 70% from its recent high of $60.
The Bottom Line
If Kodak clears all the allegations and finally gets the loan, it is likely that the stock may continue its upward journey. It is expected that Kodak’s stock will remain on speculators’ dashboard.