Interestingly, one of the top movers on Thursday, January 11, is U.S. based digital signage solutions company RMG Networks Holding Corp. (NASDAQ:RMGN). Currently, the stock is up more than 60%. But why? That’s a good question, considering no one has the answer.
What Happened Thursday?
Despite making a few positive announcements last year, such as appointing a new European director in September and rolling out a new mobile phone app in October, RMG Networks Holding hasn’t announced any news as of late that would explain today’s jump. In fact, the Addison, Texas-based company hasn’t announced anything new since posting its earnings report, which wasn’t exactly the sort of report that would cause investors to put all of their eggs in the company’s basket.
The report showed that RMG Networks Holding experienced a number of losses in Q3 2017, including losing $1.9 million on an 8% decline year-over-year in revenue to $8.8M, and a 15% decline in product sales. Further, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came to -$875 in the third quarter.
RMG Networks Holding, as mentioned, is a digital signage solutions company that provides various solutions to a number of Fortune 100 companies, so that in itself makes Thursday’s news even more interesting. Why? Because the company posted poor earnings reports, yet provides solutions for some of the wealthiest companies in the world, and is soaring on the market today, despite there being no new relevant information.
Moving forward, the company stated in the Q3 earnings report that it forecasts that its software sales will decline over the course of the next several quarters, which includes 2018.
Regardless, RMG Networks Holding is currently trading at $1.65, putting the stock up $0.65, or 65%. The stock has been fluctuating between being up 65% and 70%, so it will be interesting to see whether the RMGN stock will surpass and maintain, a 70% increase by the time the closing bell rings, or if it will drop past 65% by the end of the trading day.
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