With Urban One stock exploding in value on Thursday, it was only natural that some investors may want to cash out and enjoy a handsome profit.
That’s exactly what transpired on Friday, as UONE went on a wild ride that saw shares jump and quickly recede, leading to a 13% dip for the day.
Urban One stock topped the $10 mark within the first hour of trading.
Then, profiteering took over. By 11:20am, a downward slip to $8.75 was seen. By 1:45pm, shares were below $8. Stock market “circuit breakers” were engaged, stopping trading before a slight increase led to subsequent profit-taking.
At the Closing Bell, UONE was down 12.% to $8.33. Exceptionally heavy volume of 45.8 million shares was seen, against a new daily average of 1.9 million.
Volatility for Urban One will likely continue, especially as investors eye two potentially big developments for the company targeting African Americans. On Thursday, the City of Richmond, Va., Resort Casino Evaluation Panel recommended that the ONE Casino + Resort — which will have branding in line with Urban One’s “ONE” nomenclature — move forward as the city’s preferred casino gaming operator at a proposed site in South Richmond.
The Evaluation Panel’s recommendation is supported by the city’s Mayor, Levar Stoney.
Hours earlier, McDonald’s announced it is moving forward with what it calls “bold new investments to further reflect its diverse customers, crew members and communities in its marketing.” It’s a four-year effort, and Urban One is poised to benefit — even as Byron Allen’s Allen Media Group filed a multibillion-dollar racial discrimination lawsuit against the QSR king.
Urban One’s other class of shares, “UONEK,” was down 12.4% to $4.03 right before the Closing Bell on May 21.
