LGO massive buy at 4pm Friday

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5 million LGO shares were purchased at market close on Friday. Do you have any insights or comments on what motivates this kind of behaviour, and is it likely to be a red flag of some sort?

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Asked on December 19, 2020 11:54 am
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Thanks Mat!

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Posted by Craig Docksteader
Answered on December 22, 2020 12:59 pm
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Hi there,

To be frank, I am not entirely sure why LGO saw such a spike near end of day. It has seen increased volume over the past couple of weeks after it posted quarterly results taht topped expectations. It also launched a spinout company called Largo Clean Energy that is focused on "vertically integrated vanadium redox flow battery ("VRFB") business to provide clean energy storage systems to the fast-growing, long-duration renewable energy storage market"

However, not sure any of that explains why there was such a huge jump in volume on Friday. It could be a sign of a major player unloading its stake ( a bearish sign). On the flip side, the shares were scooped up which indicates strong demand.

Overall, given the lack of any news or update - it is a little odd to see such a huge spike in volume. I tried looking to see if there was any news of pre-arranged selling by insiders (which can happen and is usually not a concern), but could not find anything.

Mat

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Posted by Mathieu Litalien
Answered on December 19, 2020 7:57 pm