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Our list of new IPO* movers of the week includes several stocks that just went public this summer. They're seeing big share price swings as Wall Street wavers over how much these stocks are really worth.
There has been a string of high-profile disappointments among 2017 IPOs, but Redfin Corp. (Nasdaq: RDFN) has so far been a resounding success. Called the "Amazon of real estate" by one CEO, Redfin - based in Seattle - commanded a higher-than-expected price in its July IPO. Since then, its fortunes have continued to rise. Last week, the real estate website jumped 19.1%, at one point reaching as high as $31.06 - more than double its IPO price. It should be noted, however, that RDFN started to turn negative on Thursday and as of early this week had fallen to $25.11. Comparisons to Snap Inc.'s (NYSE: SNAP) rise and fall are starting to circulate. This is why we typically suggest avoiding IPOs until after the lock-up period - early gains like this are not common and often end quickly.
Medpace Holdings Inc. (Nasdaq: MEDP) jumped 15.1% thanks to a strong earnings report. The maker of medical devices and pharmaceutical products reported earnings per share of $0.38, compared to an expected $0.30. Earnings guidance for the next quarter also exceeded expectations. MEDP has been up and down since its IPO last summer. It climbed from its initial price of $23 to $37.87 in December, then fell as low as $22.18 in May. Shares closed last week at $31.63.
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ADOMANI Inc. (Nasdaq: ADOM) soared after its June IPO, more than tripling its initial offering price of $5. But since mid-May, the stock has turned decidedly negative and fell a whopping 34.1% last week. Named after the Italian phrase meaning "see you tomorrow," ADOMANI converts school buses and other transportation fleets into zero-emission electric and hybrid vehicles. We haven't seen any significant news about the company, so this appears to be another new IPO that investors are trying to find a value for. Shares closed the week at $6.39.
The fortunes of ShiftPixy Inc. (Nasdaq: PIXY) continue to fall, as it makes our losers list for the second time in three weeks. The part-time staffing solutions provider launched its new mobile app last week. But investors are apparently unimpressed, as shares fell 27.8% to $4.58, less than its June IPO price of $6. The company plans to introduce new app features in the coming weeks and is no doubt hoping they will spur user growth and reverse this downtrend.
*Stocks are listed on a U.S. exchange with an initial public offering in the last year. Data and analytics provided by FactSet.
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About the Author
Stephen Mack has been writing about economics and finance since 2011. He contributed material for the best-selling books Aftershock and The Aftershock Investor. He lives in Baltimore, Maryland.
So, what IPOs are you suggesting to invest? Should I buy one that fallen below its initial offering or one that has dropped from its high? I haven't faired as well as those I read about. I've have already invested $1950.00 Biotech with Ernie. So far we haven't done much. I just don't have another $1950.00 to invest on the new IPO you're excited about today.