Tupperware Stocks Surge
Tupperware Brands’ shares experienced an impressive surge of 53.1 percent during premarket trading on Friday, following the finalization of a debt restructuring deal by the manufacturer of kitchen storage containers. This development revitalized the interest of individual investors in the company.
Situated in Florida, the company is currently striving to reverse its business fortunes after casting doubts in April about its ability to continue operating smoothly due to the challenge of declining sales.
On Thursday, Tupperware disclosed that it had successfully reached an agreement with its lenders. This agreement is anticipated to reduce or redirect approximately $150 million in cash interest and fees, while also granting immediate access to a revolving borrowing capacity of around $21 million.
Renowned for its brightly colored plastic airtight containers, the company recently captured the attention of retail traders, contributing to a remarkable surge of more than 449 percent in its share value over the past three weeks. Notably, Tupperware ranked as the fourth most discussed stock on the investor-focused social media platform stocktwits.com on Friday.
The notable gains in share value harkened back to the remarkable rallies witnessed in “meme stocks,” such as AMC and GameStop. These instances saw retail investors congregating on social media platforms, often targeting financially challenged companies with substantial short interest for their speculative investments.
According to analytics firm Ortex, approximately 30.8 percent of Tupperware’s publicly available shares were subjected to short selling. As a result, bearish investors saw paper losses totaling $33 million in the past three weeks, culminating in year-to-date losses of $15.4 million.
Based on trade volume, Tupperware emerged as the second most actively traded individual stock among retail traders during the preceding week. This insight was shared by Peng Cheng, a strategist at J.P. Morgan, in a late Wednesday note.
As of the close of trading on Thursday, Tupperware’s market value stood at $156.56 million, reflecting a decline of about 63 percent over the past 12 months.
Cheng also noted that other meme stocks displaying high activity over the past week included Yellow and Nio Inc.
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