Why Renren Stock Gained 18.8% in September
Renren (NYSE: RENN) gained 18.8% in September, according to data from S&P Global Market Intelligence. The price movement likely stemmed from ratings upgrades and the departure of an embattled CEO from one of Renren's key investment holdings.
As a small-cap company with a valuation of roughly $600 million, Renren is prone to big swings in relation to news stories. Last month, price-shifting news arrived in the form of ratings upgrades and personnel changes outside the company. On the ratings side of things, ValuEngine upgraded Renren stock from a sell to a hold on Sept. 1, and the BidaskClub published a note that mirrored ValuEngine's ratings adjustment later in the month.
The stock also appears to have benefited from the news that the CEO of Social Finance (a company Renren owns a substantial stake in and one of its most important holdings) had stepped down following allegations of sexual harassment.
Source: Fool.com
