Shares of TOP Financial Group Ltd. fell 12.2% in premarket trades after ending Friday’s session up 64.8% — the biggest daily percentage gain since April 28, 2023 when the stock rose 441.1%.
The stock surged on trading volume of 72.63 million shares Friday, well above its 65-day trading volume of 1.26 million shares, and was halted for volatility during the session. On Monday morning, more than 500,000 shares changed hands. Short interest as a percentage of TOP Financial’s
TOP,
public float of shares was 0.86%.
Related: Meme stock TOP Financial Group soars more than 890%, spurred on by the Reddit crowd
No apparent news drove the rise in TOP Financial Group’s stock, although the Hong Kong-based broker has previously sparked meme-like attention. TOP Financial, which went public in 2022, is a holding company. Through its subsidiaries, the company operates online brokerage platforms for equities, futures and options products. Last year, the company was popular with the Reddit group WallStreetBets, a key player in the meme stock phenomenon that fueled rallies in AMC Entertainment Holdings Inc.
AMC,
and GameStop Corp.
GME,
The company was one of a number of small-cap Chinese stocks that generated meme-like buzz in 2023.
Related: Small-cap Chinese stocks spark meme-like buzz
TOP Financial has a market cap of $188.71 million. For the six months ending Sept. 30, 2023, the company’s revenue was $7.1 million, up from $5.2 million in the same period in the prior year. In a filing, the company attributed the revenue increase to its revised business strategy to diversify the services it provides to customers, rather than focus on futures brokerage commissions.
Shares of TOP Financial have risen 49.7% in the last 52 weeks, outpacing the S&P 500 index’s
SPX
gain of 21.5%.
This post was originally published on Market Watch
