Why Alto Ingredients Stock Just Popped
Shares of ethanol producer Alto Ingredients (NASDAQ: ALTO) bubbled 11% higher in Monday afternoon trading, reaching a 10.2% gain at the close on what appears to be positive news for the industry -- and just in time for earnings.
Shares trended down in the back half of February as investors worried that high corn prices (up 25% year over year in 2020) might hurt Alto, which processes the grain to produce ethanol for a fuel additive, and as a key ingredient in hand sanitizer and disinfectant.
The more expensive the corn, the more expensive the raw material Alto uses to make its products. So higher corn prices are probably bad news for Alto.
Source Fool.com
