When it comes to long-term investments, the company’s stock is still a big winner. Still, Urban One shares trading as “UONE” have been as up and down of late as a rollercoaster at Kings Dominion.
On heavier-than-average volume, Urban One stock was down sharply in midday trading on Friday — continuing a plunge that began on Tuesday (6/15). Why are shares down, following a sharp rise at the start of June?
Some are pointing to the registration of 2,928,906 Class A shares — a $58,373,097 offering for Urban One — made this week by the African American-centric media company and casino gaming operator.
The move allows Urban One to sell, from time to time, up to that amount of stock. There’s no guarantee that Urban One will execute a sale anytime soon. But, the mere possibility spooked those looking for a quick payout from a stock that shot up in value after months of tepid, uninspiring activity in the wake of social justice protests and a newly stated commitment from big companies to invest in Black-owned media with their advertising budgets.
That was exactly 12 months ago, when Urban One soared from prices in the $1.30 range to $36.30 as of June 15, 2020. By September 7, UONE was down to the mid-$3 range. For long-term investors, gains were threefold. For day traders, the pain was severe.
Then came mid-May. In the last month, UONE moved from $5.43 to $9.56 on May 20, only to dip to $7.35 on May 28. Then came a big burst of buying activity, as investors learned of Urban One’s coming casino operation in Richmond. Shares shot up to $18.57 by June 8 and climbed to $20.95 on Monday, June 14.
That finish was the best for UONE since that June 2020 rise-and-recede activity.
But, another rise-and-recede story is underway. At 1:40pm Eastern, UONE was priced at $10.81. This reflects a 48.5% share value slide for the week, should UONE close June 18’s trading session at that level.
Urban One’s “UONEK” shares are also down, but not as significantly, and were trading at $4.64 in midday trading Friday. On June 7, a $6.45 closing price was seen; UONEK was trading in the mid-$1 range through late April 2021.