Good news has the ability to send a stock soaring. This is exactly what happened to Staffing 360 Solutions on Monday, July 9. Earlier, the news that Staffing 360 acquires Clement May hit the public; the New York-based company announced that it has moved into the RPO market, acquiring a UK-based company.
After the news spread, the Staffing 360 Solutions stock skyrocketed. And I don’t mean an increase of 20-30%. The STAF stock closed the day up more than 300% and is currently up close to 10% in after-hours trade.
Staffing 360 Acquires Clement May
The acquisition makes sense, according to Staffing 360 Solutions. Why? Well, the public company involved in the staffing sector has said that the Clement May acquisition reflects the company’s goals, such as focusing “on strategic M&A activity.“
Clement May itself is a catch. This year, the company has operated profitably, and, according to the Nasdaq, Clement May produced revenues of roughly $50M “for the trailing twelve months ended” last month.
Moreover, Staffing 360’s own Mark Darby said that this acquisition enhances the company’s “capabilities in the UK in a strategic and complementary fashion to our existing businesses.“
It appears investors are just as optimistic about this acquisition. Why else would the stock shoot up more than 300%?
Staffing 360 Stock Price: Up, Up, Up
According to Google Finance, Staffing 360 Solutions (NASDAQ:STAF) ended the trading day up 301.46%. It was trading at $5.50 when the closing bell rang.
In the after-hours trading session, Staffing 360 is currently trading at $5.93, which puts the stock up 8.36%.
To no surprise, the Staffing 360 stock reached a new 52-week high today and is one of Yahoo Finance’s trending tickers of the day.
What’s going to happen after Staffing 360 acquires Clement May? The specifics have been left out, but based on what the 360 management team said today, good things are likely on the horizon. It wouldn’t hurt if the Staffing 360 stock kept this up on the market, either.
What do you think about the New York company purchasing a UK-based company?
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