After skyrocketing 86% over the past five sessions, shares of energy and transport solutions provider Nikola (NASDAQ:NKLA) are up a further 17% at the time of writing today as the company’s move to increase its outstanding shares took another turn.
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Trevor Milton, the founder and former CEO of the company commented that he had voted against the proposal and that what the company needs is not new shares but a new leadership!
The company though has clarified that Mr. Milton is not in a position to block any proposal and is in direct violation of his separation agreement. The company has received a delisting notification from Nasdaq for falling short of the minimum closing bid price requirement.
Further, its annual investor meeting was adjourned to July 6 after the proposal to increase its outstanding shares failed to win a majority of all outstanding common shares for approval.
Despite the surge in price, Nikola shares are still languishing 75% lower over the past year while bears still remain in charge with a 20.6% short interest in the stock at present.
Overall, the Street has a $3.25 consensus price target on Nikola alongside a Hold consensus rating.
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