AgileThought (NASDAQ:AGIL) stock is on the rise Wednesday after the IT services company filed for Chapter 11 bankruptcy yesterday.
That initial bankruptcy filing saw the company’s shares close out Tuesday down 17%. With that came around 2.3 million units traded, which is above its daily average of 1.8 million shares. This was due to investors selling alongside the bankruptcy filing.
However, it’s one day later, and now shares of AGIL stock are on the rise. The stock has rocketed more than 116% during pre-market trading this morning. With that comes over 21 million shares of the stock changing hands.
It seems likely that this movement is from traders jumping into AGIL stock following yesterday’s dip. We’ve seen this happen before when a company files for bankruptcy. Investors jump into the company at a lower price in an attempt to shore up its shares and leave with a profit.
AGIL Stock Bankruptcy Details
One thing that might be attracting investors to AGIL stock is the nature of its bankruptcy filing. The company only intends to remain in bankruptcy for 90 days as part of a restructuring process.
Adding to that, it’s already secured $22 million in funding from Blue Torch. A subsidiary of Blue Torch has also agreed to acquire all of AgileThought’s assets in a stalking horse bid. These plans are likely helping to draw traders into AGIL stock in spite of the bankruptcy filing.
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On the date of publication, William White 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.
