Tupperware's stock extends recent rally, up 350% in 5 trading days (updated)

Tupperware Brands

27/07/2023 21:57

(Updates with closing prices)
    By Caroline Valetkevitch
       NEW YORK, July 27 (Reuters) - Shares of home and kitchen
product maker Tupperware  TUP.N  extended their sharp,
unexplained gains on Thursday, rising more than 50% and putting
the stock up nearly 350% during the last five trading days
despite recent concerns about its business.
    The manufacturer's stock rose as high as $3.75, its highest
level since early March, and closed up 56.3% at $2.97. Trading
volume was also well above average for the company and reached
more than eight times the stock's 10-day moving average.
    The stock gains have come despite signs earlier this year of
problems for Florida-based Tupperware Brands Corp. In April, it
raised doubts about its ability to continue amid growing concern
about weak sales, while in May it said it signed on investment
bank Moelis & Co to help explore strategic alternatives.
    It had also said that it had found additional prior period
misstatements in its financial reporting.
    Tupperware's stock on Thursday was also among the most
watched tickers on retail-investor-focused Stocktwits.com, with
an "extremely bullish" sentiment score.
    The move in Tupperware's shares echoes those seen in
financially challenged companies like Bed Bath & Beyond
 BBBYQ.PK  and other "meme" stocks known for their sudden
popularity with retail investors. 
    Also like other "meme" shares, Tupperware's stock is highly
shorted. About 25% of the company's public float was sold short
as of July 14, according to Refinitiv data.
    Investors who sell securities 'short' borrow shares and then
sell them, expecting the stock to fall so they can buy the
shares back at the lower price, return them to the lender and
pocket the difference.
    Even with the recent gains, Tupperware's stock is down about
28% for the year to date.

 (Reporting by Caroline Valetkevitch; editing by Susan Heavey
and Deepa Babington)
 ((caroline.valetkevitch@thomsonreuters.com))