Stock for Smart for Life, Inc. (SMFL), early in today’s premarket has suddenly jolted into action, shooting up in price. Trading for a little over a month, SMFL has shot up by 75.3% in the early hours preceding today’s trade session. Riding a persistent bearish movement since its IPO, the stock has devalued by over 65%, amidst occasionally similar upward peaks. Wednesday last week saw an abrupt 27.7% jump which had then subsided by Monday, falling 19.6%. The degree to which this growth spurt persists, and whether or not it may see a fall down, remains a question looming across the market.
Section 13D Filings for SMFL
A scan of the various reporting platforms does not indicate any external trigger that could potentially help explain the current price shoot-up. However, a further deep dive into the company’s affairs reveals two Section 13D filings released yesterday which brings significant hype. The filings point to the purchase of 5.09% and 29.19% of total SMFL shares by two company insiders. These were respectively acquired by the company’s president, Darren Minton, and executive chairman/ founder, Alfonso J. Cervantes.
The scale of this buying of SMFL stock, whilst factoring in the position the buyers hold in the managerial hierarchy, was bound to turn heads in the stock market. Given the information advantage insiders hold, this news signals positive news for investors, driving up SMFL prices as a result. Furthermore, the move significantly aligns the interests of the management and owners of the company.
‘Smart for Life’ Prospects
The optimistic anticipation for SMFL growth does not rest solely on the recent beneficial ownership reports that have surfaced. The company has been making the news with positive announcements and business breakthroughs, which reinforce market perception towards SMFL.
- Last month, SMFL Chairman announced the acquisition of the Sports Illustrated Nutrition trademark rights. Being the most well-recognized brand in the global athletic domain, the news signaled a breakthrough for SMFL.
- Similarly, last week the company announced a major acquisition of Ceautamed Worldwide LLC and all affiliates. The nutritional product developer would significantly enhance SMFL value.
- On Thursday, the company announced its products gaining approval from Amazon for a launch in the Singapore markets.
SMFL shot up as section 13D filings confirmed a substantial buy of shares by company insiders at the highest levels. This news, coupled with extremely positive breakthroughs throughout the month instill optimism regarding the stock, leading to an SMFL rush, driving up prices in the process.