Here's Why Pacific Ethanol Rose as Much as 31.6% Today

Here's Why Pacific Ethanol Rose as Much as 31.6% Today

Shares of Pacific Ethanol (NASDAQ: PEIX) leapt nearly 32% this morning after investors decided two straight days of big declines was a bit overdone. The ethanol producer reported second-quarter 2017 results on the afternoon of Wednesday, Aug. 2, but other leading producers have been reporting all week. An unusually weak second quarter of the calendar year for Green Plains and Archer Daniels Midland hinted that Pacific Ethanol wasn't going to do much better. It didn't. 

But at least one fund or investor saw an opportunity. A single trade shortly after the market opened on Thursday gobbled up 181,000 shares of Pacific Ethanol stock, which is about 25% of the daily average trading volume. The stock has fallen closer to Earth since, but that purchase appears to have set the tone for today. As of 12:12 p.m. EDT, it had settled to a 13.1% gain.

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Source: Fool.com