Investing

Thursday's Moving Meme Stocks: AMC, Canoo, Cleveland-Cliffs, Nano Dimension

Paul Ausick

Published: June 17, 2021 1:24 pm

Last Updated: June 17, 2021 1:25 pm

What goes up must also come down, they say. AMC Entertainment Holdings Inc. (NYSE: AMC) has reversed that Thursday, recovering nicely from a Wednesday decline of 6.5% with a noon-hour gain of more than 7%. At one point in the morning, the stock traded up as much as 19%. There was no news behind the move, of course, just as there was no negative news behind Wednesday’s decline.

The other stock seeing a nice increase Thursday is Nano Dimension Ltd. (NASDAQ: NNDM), an Israel-based maker of a 3-D printing manufacturing system for producing a variety of electronic products. Shares had gained nearly 10% in the late morning, but a sell-off began shortly before noon, and shares held a gain of only about 3% in the noon hour. Interesting sidebar: Nano Dimension is a holding in two of Cathie Wood’s ARK Invest exchange-traded funds: ARK Autonomous Technology & Robotics ETF and ARK Next Generation Internet ETF. Combined the two funds own about 15.1 million shares valued at around $114 million. The latter fund reportedly had pared its holdings of Nano Dimension stock by nearly 19,000 shares Thursday.

While it may seem like a category error to think of a 160-year old mining company as a meme stock, Cleveland-Cliffs Inc. (NYSE: CLF) has defied the odds. It is unclear why an iron ore miner that spent heavily last year to buy steelmaking assets has attracted attention from the WallStreetBets punters, but the average daily volume in the shares has more than doubled over the past year. The stock traded 89 million shares on June 9 with the price rising by about 13% on the day. Nearly 75 million shares were traded on June 10, pushing the stock to a new 52-week high, before closing down slightly for the day.

In April, Goldman Sachs stuck a Neutral rating and a 12-month price target of $20 on Cliffs’ shares. A month later, Credit Suisse rated the stock Outperform with a price target of $24.

Shares of EV maker Canoo Inc. (NASDAQ: GOEV) dropped about 8% on Wednesday, and the stock traded lower by more than 4% in the noon hour Thursday. At the investor’s meeting Thursday, CEO Tony Aquila said Canoo would build a manufacturing plant in Oklahoma and begin producing cars there in 2023. The plant is expected to employ 2,000 workers. The company also reached an agreement with a Dutch firm to begin building vehicles in 2022. Canoo is targeting production of 1,000 EVs next year and 15,000 in 2023.

With Thursday afternoon trading still to come, AMC shares were trading up about 8.5% for the day, at $59.87 in a 52-week range of $1.91 to $72.62. The average daily trading volume is 146.9 million, and about 172 million shares had traded so far Thursday.

Nano Dimension stock traded up about 4.2% in the noon hour, at $7.86 in a 52-week range of $1.31 to $17.89. The average daily trading volume on the stock is 17.3 million, and about 13.3 million had traded.

Cleveland-Cliffs shares traded down by about 7.3% to $21.00, in a 52-week range of $4.92 to $24.77. More than 32 million shares had traded on Thursday, well above the daily average trading volume of 25.3 million shares.

Canoo stock was down about 4.3% to $9.77, in a 52-week range of $6.51 to $24.90. The stock trades an average of around 5.8 million shares a day, and 4.9 million had already changed hands Thursday.

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