Kraton Corporation (NYSE:KRA) has seen quite a jump in its shares this morning! In 2019, the stock had been on a slight but steady incline. In 12 months, however, the stock had taken quite the dip. Today, Kraton’s stock is seeing its biggest daily rebound in well over a year. In fact, the company is among the top trading stocks on the Russell 2000 for most percentage gains on the market today.
What’s the cause? Will it continue upward? Let’s find out!
Kraton Corporation Share Spike
Kraton Corporation sells and manufactures styrenic block copolymers and other engineered polymers in Africa, Asia, the Americas, Europe, and the Middle East. The company is based out of Houston, Texas and began trading on the NYSE back in early-2018.
This morning, Kraton announced new initiatives that they feel will enhance its shareholder value. The company will begin reviewing alternatives to its Cariflex business. Kraton Corporation is considering selling the business, so the Board authorized a repurchase program for the outstanding shares up to $50 million.
“We believe that the high-margin Cariflex business and its attractive growth prospects are not appropriately valued as part of Kraton,” said Kevin M. Fogarty, Kraton Corporation’s CEO. “Moreover, in keeping with our strategy to continually manage our portfolio to drive value creation, we believe that a focus on enhancing Kraton’s core businesses, while strengthening the balance sheet to position the Company to take advantage of future growth opportunities, represents the best use of capital at this time.”
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There is no assurance that the review of Cariflex will result in its sale. The company claims it will keep investors in the loop on the matter as it progresses. Kraton said that JPMorgan (NYSE:JPM) will be its financial advisor in the process.
Kraton Corporation Stock Movement
According to Yahoo Finance, KRA is currently trading on the NYSE at $35.78 a share, up +$6.62 (+22.70%).
Featured Image: Kraton
