Fitness Champs (FCHL) stock rocketed higher on Thursday alongside a busy news week for the Singapore-based sports education company. Earlier this week, the company underwent a reverse stock split. This saw it consolidate shares on a one-to-15 basis. The company took this action to prevent its stock from being delisted.
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Following the reverse stock split, Fitness Champs announced a public offering for its shares. This offering included 6 million shares of the company’s stock, as well as warrants for another 6 million shares. The shares in this offering were sold for $3 each, and each share came bundled with a warrant. Interestingly, the warrants’ exercise price doesn’t match the share price. Instead, the exercise price was is $5.10 each.
The interest in Fitness Champs stock makes sense alongside these two catalysts. However, traders will note that a reverse stock split and public offering so close together will likely cause volatility in the shares. That means traders may want to hold off on taking a stake in FCHL until the stock has time to calm down after these events.
Fitness Champs Stock Soars Today
Fitness Champs stock was up 84.21% in pre-market trading on Thursday, following a 41.84% fall yesterday. The shares have also decreased 50.71% year-to-date and 97.32% over the past 12 months.
With the recent news came heavy trading of FCHL stock today, as more than 11 million shares changed hands. That’s above the stock’s three-month average daily trading volume of about 3.06 million shares.
Is Fitness Champs Stock a Buy, Sell, or Hold?
Turning to Wall Street, traditional analyst coverage of Fitness Champs stock is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates FCHL as Underperform with a 25-cent price target. It cites “weak financial performance quality (margin deterioration, weakened cash generation, and a sharply higher leverage profile with very thin equity)” as reasons for this stance.
