- The stock price of Vericity Inc (NASDAQ: VERY) increased by over 100% pre-market. This is why it happened.
The stock price of Vericity Inc (NASDAQ: VERY) – a company that provides life insurance protection products for the middle American market – increased by over 100% pre-market. There is no direct news or recent SEC filings from the company so it appears that there are external factors at play.
It’s worth mentioning that the company has a low float of about 1.91 million shares, which is ideal for aggressive day traders. And there was an uptick in discussions about the company in social media and stock trading chatrooms yesterday as it also saw a jump during after-hours trading. Due to the low float and momentum in stock price, many day traders added this stock to their watch list for today.
Earlier this, JPMorgan analyst Jimmy Bhullar had increased the price target on Globe Life, which is a company in the same space as Vericity. Bhullar noted that he is less upbeat in the outlook for life insurance stocks following strong recent performance. And he expects long-term business fundamentals to be lackluster due to weak return on equity, modest top-line growth, and high-tail risks. But the prospects of further interest rate increases and the support of credit by the government are major factors as to why Bhullar is not as cautious about the life insurance space.
Note: If more details about why the stock price increased emerge, then this article will be updated.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.