D.E. Shaw Stake Disclosure Boosts Kodak Stock
Source: istock

D.E. Shaw Stake Disclosure Boosts Kodak Stock

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Kodak Eastman has had a volatile year, which is saying a lot for 2020. The photography equipment company, which had been fading for years, saw a massive boost after it announced a transition to producing medical reagents. However, its stock plunged amid allegations of insider trading. And now, the stock is regaining some momentum after hedge fund D.E. Shaw & Co acquired a significant stake in the company.

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What's the latest Eastman Kodak news?

Eastman Kodak stock soared in July after the company revealed that it had made a $765 million loan agreement with the federal government to transition to producing reagents for medical goods. The stock jumped 570 percent to $60 per share at one point.

D.E. Shaw Stake Disclosure Boosts Kodak Stock
Source: istock
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The euphoria quickly ended when lawmakers asked the SEC to investigate Kodak. It emerged that executives had purchased shares in the company around the time it learned that the loan had been approved. The loan was put on hold, and a securities fraud class-action lawsuit was filed on behalf of shareholders. Kodak stock plunged to less than $6 per share yesterday.

D.E. Shaw's Kodak stake

Kodak looks set to reverse its fortunes yet again after the company disclosed that Delaware hedge fund D.E. Shaw & Co had acquired a significant stake in the company. According to disclosure documents, the hedge fund acquired over 3.94 million shares in Eastman Kodak, representing a 5.2 percent stake.

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What is Kodak's stock price today?

Kodak Eastman was trading relatively flat yesterday, ending the day at $5.98 per share. In extended trading hours, the stock soared following news of D.E. Shaw & Co's stake. As of this article's writing, the stock was trading at $8.30, marking an increase of over 38 percent.

D.E. Shaw Stake Disclosure Boosts Kodak Stock
Source: istock

What is Kodak's stock forecast?

Most long-term stock forecasts for Kodak paint an ugly picture. It's unlikely that the stock will return to the levels seen in July until after the SEC decides whether executives at Kodak violated insider trading rules.

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