Shares of cosmetics maker Revlon (REV) continued their enormous trajectory, gaining almost 35% on June 22 to close at $8.14. Incredibly, the shares are up almost 600% over the past ten days.
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The newest so-called “meme” stock has risen for the seventh consecutive trading session, recording double-digit climbs since the news of its probable bankruptcy became public.
Notably, on June 13, just before the company filed for Chapter 11, the stock reached its all-time low, crashing 50% on a single day to close at $1.17.
Retail investors are amassing the stock of the company. Earlier, it was speculated that the stock rally was driven by short interests.
However, industry experts say there’s possibly more to the story than just the short squeeze.
Wall Street’s Take
The stock has picked up a rating from one analyst in the past three months. Jefferies analyst Stephanie Wissink has a Hold rating on the stock with a price target of $8.50, with an upside potential of 4.42%.
TipRanks’ Stock Investors Tool Concedes
In a reaffirmation, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Revlon, with a whopping 35.9% and 66.6% of investors increasing their exposure to REV stock over the past seven days and 30 days, respectively.
Conclusion
Historically, this is not the first time that a bankrupt stock has been halted on circuit breakers. In 2020, car rental firm Hertz Corp had a similar rally of over 500% after it filed for bankruptcy. What’s next for Revlon? Perhaps retail investors will decide.
