The stock experienced significant volatility on June 14. During regular trading hours, it closed at $5.96, marking a substantial increase of $4.60 or 338.24%. However, in after-hours trading, it fell to $4.50, down by $1.46 or 24.50%. The stock’s trading range for the day was between $3.50 and $8.37. Over the past 52 weeks, the stock has fluctuated between $1.03 and $20.26. On this particular day, the trading volume was notably high at 70,986,932, compared to an average volume of 3,707,820. As of the latest data from fintel.io/ss/us/kavl, the total short interest in the stock stands at 268,475 shares, with a short interest ratio of 0.02 days to cover, according to NASDAQ. The short interest as a percentage of the float is 31.74%, with the figures for short interest sourced from NASDAQ and the float data from Capital IQ. Additionally, the off-exchange short volume, which includes Dark Pool volume, is reported at 22,409,919 shares, making up 56.57% of the total off-exchange short volume, as per data from FINRA.
There has been no new news from the company. The last news was about 2 months ago when Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL), the exclusive U.S. distributor for Bidi Vapor products, reported its fiscal Q1 2024 results and provided a business update. The company saw a significant reduction in net inventories, dropping 49.5% to $2.1 million as of January 31, 2024. They also ended their service agreement with QuikFillRx to cut costs, anticipating savings of over $1.5 million annually. Leadership changes included appointing Nirajkumar Patel as CEO and Eric Morris as interim CFO.
Patel highlighted the company’s strategic redirection, particularly after regulatory challenges with the FDA regarding Bidi Vapor’s products. Despite these setbacks, Kaival is exploring new revenue opportunities through an extensive inhalation patent portfolio acquired from GoFire, Inc., and has engaged Maxim Group LLC to explore strategic alternatives excluding their international subsidiary, Kaival Brands International.
For fiscal Q1 2024, revenues increased to $3.2 million from $2.5 million in the prior year, driven by reduced customer credits. The gross profit rose to $1.2 million, or 37.3% of revenues, due to lower costs and increased efficiencies. However, the company still reported a net loss of $2.2 million, or $0.76 per share, which is an improvement from the previous year’s $3.0 million loss. Kaival ended the quarter with $0.6 million in cash and a working capital of $0.3 million. These details are further elaborated in their latest 10-Q report filed with the SEC.
