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One of today’s biggest movers in the market is ToughBuilt (NASDAQ:TBLT). At today’s peak, shares of TBLT stock more than doubled, trading on extremely heavy volume. As of the time of writing, this stock is still up more than 70% as the market continues to rebound nicely this week.
Aside from macro factors driving the whole market higher, ToughBuilt has one key company-specific catalyst investors appear to be watching. This week, the manufacturer and distributor of various tools and accessories for the construction industry announced the closing of a $6 million public offering.
ToughBuilt issued 3.16 million shares at a price of $1.90 per share. This represented a substantial premium to the average price this stock has traded at over the past week (around $1.40 per share.)
Any sort of offering at a higher valuation than where the market is currently at is likely to be viewed positively by investors. Such is certainly the case for TBLT stock, which is now trading at a premium to this offering price. In fact, this morning, TBLT stock hit $3.95 per share, more than double the public offering price.
Let’s dive into what’s driven volatility with ToughBuilt of late.
Why Is TBLT Stock So Volatile of Late?
Like many other construction-related companies, ToughBuilt hasn’t been immune to the bearish macro pressures pushing valuations down in this sector. Construction…