The Fenix Resources Ltd (ASX: FEX) share price is surging today despite no price-sensitive news having been released by the company.
And today’s gain is only the latest extreme movements faced by Fenix’s stock this week. The company’s share price plummeted a massive 22% on Monday.
Today, it seems to be making up some of its lost ground. At the time of writing, the Fenix share price is 23 cents, 9.52% higher than its previous close.
Let’s take a look at what’s been driving the iron ore producer’s stock this week.
What’s driving Fenix’s stock this week?
The Fenix share price is back in the green again today despite no price-sensitive news from the company having hit the ASX.
However, we have heard some non-price sensitive news from Fenix. Last night, the company announced its managing director, Rob Brierley, sold 6 million shares in the company for around 21 cents each. Although, it was noted that the sale was meant to fund a real estate purchase, rather than to simply cash out.
Oddly enough, this news might have sparked the market’s enthusiasm towards Fenix’s stock. Despite it insinuating, the company’s boss believes 21 cents is a worthy price.
Unfortunately for Brierley, he might have chosen the wrong day to sell his shares. If he had palmed off the stock on Friday, he could have got substantially more bang for his buck.
That’s because Monday saw the Fenix share price plummet 22%. It then fell another 10% over the course of Tuesday and Wednesday.
That means today’s uptick could be the market’s way of correcting itself after this week’s tumble.
As The Motley Fool Australia reported at the time, the company’s stock underwent a sell-off on Monday after its ex-dividend date passed.
Prior to its ex-dividend date, Fenix was sporting a massive 17.8% dividend yield.
Fenix Resources share price snapshot
Fortunately, the Fenix share price is gaining back some of its losses today. Though, it’s not quite enough to get the company’s stock back into the green.
Right now, shares in Fenix are trading for 4% less than they were at the start of 2021. However, they have gained 64% since this time last year.
The post Why is the Fenix (ASX:FEX) share price surging 10% on Thursday? appeared first on The Motley Fool Australia.
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More reading
- Why is the Fenix Resources (ASX:FEX) share price crashing 27% today?
- Fenix Resources (ASX:FEX) share price eyes 16% maiden dividend
- Worried about iron ore prices? This ASX share has prices locked in at A$230/tonne
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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