new-recommended-broker-banner new-recommended-broker-banner
Practice Stock Trading Your Capital Is At Risk

Here is Why the Pedevco (NYSE: PED) Stock Price is Down 20% Premarket

Updated: 4 Oct 2021

The Pedevco Corp (NYSE: PED) stock price is down over 20% in Monday premarket trading. It seems the energy company’s investors didn’t react kindly to its recent purchase agreement. 

After finishing last week with strong gains, Pedevco stock has witnessed a sharp sell-off coming into this week, with the stock price currently sitting around $1.80, a significant drop from the Friday closing price of $2.11. With such a loss in momentum, many are wondering what happened to last week’s bull run…

The energy acquisition and development specialist shocked its investors today with the announcement of a security purchase agreement with an unnamed institutional investor. The deal will involve a registered direct offering for the purchase of around $7 million worth of common stock – totalling 4.5 million shares at a price of $1.57. The offer is expected to be completed by Wednesday this week, the 6th of October. 

new-recommended-broker-banner

Leaving investors reeling this morning, the agreement has sparked a 20% sell-off before the Monday market open, with the stock price continuing to drop at the time of writing. Losing almost half of last week's gains in a matter of hours, this could prove to be a difficult trading week for Pedevco Corp unless they restore trust with their investors. 

Should You Invest in Pedevco Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .