The market has been bumpy today, with certain top growth stocks selling off on economic news. However, for investors in small-cap stocks, there are a few pockets of green worth exploring. One company that is receiving outsized interest is Safe and Green Development (NASDAQ:SGD), which is up big today on very heavy volume. Impressively, shares of SGD stock have more than doubled in early afternoon trading, jumping well above the $1 per share level many are closely watching.
This real estate development company is one that’s seen a very volatile start to the year, and is now trading right around where it started 2024, after today’s massive increase. Today’s surge appears to be tied to an announcement that Safe and Green has secured financing for an expansion of a key project in Atlanta.
Let’s dive into what was announced, and why investors are flocking toward this stock today.
Why Is SGD Stock Surging Today?
Safe and Green announced a key update to its Norman Berry Village property in Atlanta, Georgia, earlier today, in which the company appears to have a clear path forward to acquire a previously announced right-of-way on its existing property, as well as an adjacent 18,000-square-foot parcel, which will be part of its upcoming Norman Berry development.
Financing any sort of real estate project in this environment is difficult. Accordingly, with so much uncertainty surrounding this project, shares of SGD stock traded at a discount. The fact that the developer now has a clear line of sight toward starting the project and generating cash flow has some investors considering buying into this stock at beaten-down levels. At the time of writing, Safe and Green’s market capitalization sits just shy of $15 million, so there’s plenty more upside where this came from, if the company can hit its development targets.
The company aims to provide 68 single- and double-occupancy residences, aimed at seniors and those requiring assisted living services. The 125,000-square-foot proposed facility is certainly impressive, and investors have reason to be optimistic about the company’s future prospects after this financing announcement.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
