Cheer (CHR) stock rocketed higher on Wednesday after the advanced mobile internet infrastructure and platform services company announced its Board of Directors has received two non-binding proposals. These proposals would result in the purchase of all of the company’s outstanding shares of CHR.
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The first proposal comes from Zhongsheng Dingxin Investment Fund Management, an existing shareholder in Cheer. It has offered to acquire all shares of CHR stock for 56 cents each, representing a premium of 300% over its prior closing price. The second offer comes from Excel Ally Ventures Limited and seeks to purchase all shares of CHR stock for 52 cents each, representing a premium of 271.5% over yesterday’s closing price.
Cheer said that its Board of Directors will form a special committee to evaluate these offers. This group will be made up of independent directors. The company said it hasn’t made a decision on this matter and cautioned shareholders against making trades related to this news.
Cheer Stock Movement Today
Cheer stock was up 93.38% in pre-market trading on Wednesday, following an 8.11% rally yesterday. Even so, the stock is still down 94.54% year-to-date and 95.05% over the past 12 months.
Today’s news comes with heavy trading of CHR stock, as more than 316 million units have changed hands. To put that in perspective, the company’s three-month daily average trading volume is about 23.4 million shares.
Is Cheer Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of Cheer is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates CHR stock a Neutral (58) with no price target. It cites “strong financial performance is overshadowed by bearish technical indicators and a low P/E ratio” as reasons for this stance.
