Diamond Foods Inc. (NASDAQ: DMND) is surging on what would be considered no real news from the company. The driving force is that BlackRock disclosed on Friday a larger stake of almost 8% in the troubled food products company.
It is interesting that the news flow from Diamond has been so weak. With a new management team, many of the past accounting issues that the company suffered from seem to be in the rear view mirror. Whether or not the full issues are really behind remains up for debate after the issues have persisted since 2011.
We would note that some of today’s move being a short covering rally as well. While the current short interest of 7.109 million shares is the smallest short interest in a year, the days to cover is still about 17.6 days. That days to cover is the largest short interest is the largest reading since the end of October.
Shares of Diamond Foods are up over 13% at $16.33 against a 52-week trading range of $12.85 to $28.29.