Shares of IQE plc (LON: IQE) surged 7.49% today despite the lack of major announcements by the company as buyers bought the semiconductor company’s shares as they anticipate positive developments from the company in future.
Investors could also be reacting to the recent positive developments in the company such as the $10 million contract award from a client in the defence and military sector.
The company also recently announced that its long-term CEO will step down from his role once a replacement has been found after which he will assume the role of President and retain a seat on the company’s board.
IQE shares are up 40% this year having recovered from the 69% drop experienced in March at the onset of the global coronavirus pandemic.
Growth investors may be attracted to the semiconductor company give its latest rally, but value investors may take a more cautious approach given that IQE has a price-to-earnings ratio of 480, which is quite high.
Stock traders may benefit from the daily swings in the company’s stock price, while long-term investors may be best served to wait for a pullback before buying the semiconductor company’s shares.
IQE share price
IQE shares today surged 7.49% to trade at 70.30p having rallied from Friday’s closing price of 65.40p.