Erickson Inc (EAC) Stock Doubles on Navy Deals

Erickson Inc (NASDAQ:EAC) has more than doubled in value after the firm won two contracts with the U.S. Navy

by Josh Selway

Published on Jun 7, 2016 at 10:20 AM
Updated on Jun 24, 2020 at 10:16 AM

Aviation services stock Erickson Inc (NASDAQ:EAC) has more than doubled in value today, last seen 143.6% higher at $1.34, after the company won two contracts with the U.S. Navy for roughly $70 million. Specifically, the firm will "provide vertical replenishment and other rotary-wing logistic services," according to the press release. The deals are even more impressive considering EAC's market cap is less than $20 million. 

While the doubling of a stock price is always a shock, EAC's historic technical struggles make today's price action that much more surprising. For instance, the shares were trading above $5 less than a year ago, and in 2016 alone, they had dropped almost three-fourths of their value, as of yesterday's settlement. In fact, EAC touched a record low of $0.51 on Monday. 

Suffice it to say, this is a terrible day for Erickson Inc (NASDAQ:EAC) short sellers -- of which there are plenty. Short sellers control 7.2% of EAC's float, and it would take them two weeks to cover their positions, at the stock's average daily volumes. As such, it's possible EAC could keep rising in the days ahead, if these bears begin to throw in the towel

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