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Why Benson Hill (BHIL) Stock Price Continues to Plummet

Nigel Firth
Nigel Frith trader
Updated 1 Oct 2021

Benson Hill Inc. (NYSE: BHIL) has seen a huge drop-off in stock price over the last 48 hours of trading – BHIL is currently trading around $6.80, roughly a 35% fall from $10.00. After it’s initial two days of public trading on the NYSE, everything isn’t going quite to plan for the new entity. 

Benson Hill stock price saw a sharp sell-off in its preliminary days of trading. The company went formally public involving a merger with SPAC Star Peak Corp II (STPC) – approved by STPC shareholders only a few days ago. 

Yet in BHIL’s first 24 hours of trading, market sentiment suggested a deep uncertainty regarding the company's future, illustrated by a sharp, immediate sell-off in BHIL stock. The downwards movement carried on throughout Friday trading, now trading under the $7 mark. 

It appears that the Benson Hill stock suffered from a widespread sell-off, spurred by a view that the company’s earnings may be distorted further into the future. The validity of Benson Hill’s projections seem to be under scrutiny from its investors following the merger presentation.

It’s clear that Benson Hill hasn’t had the best start to its publicly traded journey…

However, the company is intending to use the merger proceeds to accelerate investment in its new CropOS, product commercialization and to foster further agri-food expansion, and with an increasing need for more sustainable plant growth technologies…many are arguing that Benson Hill stock price is undervalued.

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Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.