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Why Is Clearone Communications Stock (CLRO) Up 100% Today?

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Clearone Communications stock surged on Tuesday after it announced a special dividend.

Why Is Clearone Communications Stock (CLRO) Up 100% Today?

Clearone Communications (CLRO) stock rocketed higher on Tuesday after the video and audio streaming solutions company announced a special dividend for shareholders. Its Board of Directors has approved a special one-time dividend that will provide legacy shareholders with a 100% stake in proceeds from any possible sale, or all of the company’s current assets and operations.

Don’t Miss TipRanks’ Half-Year Sale

Clearone Communications will pay the dividend on July 18 to shareholders on record as of July 11. The special dividend isn’t available to investors who sell their shares of CLRO stock prior to the July 18 pay date. This dividend is part of the company’s ongoing strategic process to secure an asset sale and other possible transactions.

CLRO stock was up 98.43% in pre-market trading on Tuesday, following a 4.17% rally yesterday. However, the shares have fallen 51.02% year-to-date and 42.59% over the past 12 months. Clearone Communications also saw heavy trading today, with some 15 million shares traded, compared to a three-month daily average of only about 29,000 shares.

Is Clearone Communications Stock a Buy, Sell, or Hold?

Wall Street’s coverage of Clearone Communications is sparse, but TipRanks has it covered with the help of AI analyst Spark. It rates CLRO stock a Neutral (44) with a $5.50 price target, representing a potential 4.35% downside. Spark cites “significant financial challenges, weak technical indicators, and poor valuation metrics” as reasons for this stance.

See what else Spark has to say about CLRO stock

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