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Here’s Why Fever-Tree Share Price Surged Today

Simon Mugo trader
Updated 1 Sep 2020

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Fever-Tree logo

Shares of Fever-Tree Drinks Plc (LON: FEVR) today surged 1.65% after the long weekend despite the lack of any major news releases from the company, which makes premium drink mixers.

Fevertree shares rallied as investors bought the company’s stock after a long weekend, which was largely punctuated by drinks and mixers with Friends and family extending into Monday’s summer bank holiday.

The company’s shares have been doing great in recent months having recovered from the March lows, which were triggered by the coronavirus pandemic to trade higher for the year.

Today’s surge reversed the stock’s 4-day losing streak from last week and might signal that the stock has bottomed, and is headed much higher.

The company’s latest investor update indicated that its business had been booming during the COVID-19 lockdown period, which boosted investor confidence in the company.

There is no reason to suggest that the company’s business is likely to suffer in the near term, which explains why the stock is trading near its yearly highs.

Fevertree share price

Tradingview chart of Fevertree share price 01092020

Fever-Tree shares today surged 1.65% higher to trade at 2098p having closed Friday’s session trading at 2064p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading