The stock of NewAge, Inc. (NBEV) stock gained 3.27% in the current market to reach $1.17. At the end of the last trading session, the stock closed at $1.20. The one-year range of the stock was between $1.13 and $4.44, this is a loss of more than 65% value in its stock in the last trading session, the average volume of the stock traded was around 1.93 million.
The reasons for the NBEV stock uncertainty:
In the month of November, NBEV announced its 3rd quarter results and new development in the discovery of new anti-aging formula. When the company announced its new formula the stock of the company increased for a couple of days and then declined the day after.
NBEV announced in the mid of November that they have discovered a new formula that fights against the effect of aging and filed for a patent that specific formula to protect its uniqueness. This formula is found to be effective in the support of heart health and anti-aging. This new discovery will be able to help in the formation of a medicine that will help to extra-ordinarily increase the natural secretion of an element called human growth hormone produced by the anterior pituitary gland.
Heart health decreases with aging. This product by the Colorado origin organic and healthy products manufacturer also said that the new product will also be effective in improving cardiovascular health.
Another reason which helped the stock to surge for a short span of time was the financial and operational results of its 3rd quarter report. Following are the highlights of their third-quarter result.
Highlights of 3rd quarter:
- The revenue of NBEV was $99.55 million in the 3rd quarter of 2021. This is a 58.73% increase in revenue as compared to the 3rd quarter of 2020. Last year in the same quarter the revenue was $62.72.
- The net loss was reduced by more than 80% to – ($2.70 million) in the 3rd quarter of 2021. The net loss in the same quarter of 2020 was reported to be – ($14.13 million).
- The gross margin was 66.3% of the net revenue in the 3rd quarter of 2021 as compared to 59.8% in the same quarter of 2020.
- The company’s cash and cash equivalent as of 30th September 2021 was reported to be $46.83. This is an increase of 74.18% as compared to cash in hand in the same quarter of last year which was $26.89 million.
Conclusion:
The financials of NBEV showed a significant increase in the numbers and if the company remains consistent in delivering at the same pace, the profitability will increase with the inclusion of the new products. This will increase the trust of the investors in its stock to invest more in the expectation of a capital and dividend gain.
