Why Radius Recycling Inc. (RDUS) Soared Last Week?

We recently published a list of These 10 Stocks Posted Double-, Triple-Digit Gains Last Week. In this article, we are going to take a look at where Radius Recycling Inc. (NASDAQ:RDUS) stands against other stocks that posted double-, triple-digit gains last week.

Micro- and small-cap companies dominated gains on the stock market last week, bucking an overall market pessimism, thanks to a flurry of company developments that bolstered investing appetite, including acquisition and stellar earnings performance.

In this article, we listed the names of last week’s top performers and detailed the reasons behind their gains based on their share prices last Friday, March 14, and their closing prices on March 7, or the Friday prior.

We classify micro-cap companies as those with a market capitalization below $300 million and small-cap firms as those with a market capitalization below $1 billion.

An aerial view of a plastic waste recycling plant, showcasing the company’s efforts towards a cleaner environment.

Radius Recycling Inc. (NASDAQ:RDUS)

Radius Recycling soared by 102.8 percent week-on-week following news that it was set to be acquired by Toyota Tsusho America, Inc. for $1.34 billion.

In a statement, RDUS said it had entered into a definitive merger agreement with Toyota Tsusho for the acquisition of all RDUS shares at a price of $30 apiece.

The purchase price represents a 119-percent premium from RDUS’s closing price of $13.66 on March 13, prior to the acquisition announcement.

The transaction expects the two firms to join forces in advancing the circular economy by increasing recycling and reducing waste across the industrial, manufacturing, and retail sectors.

RDUS said even with the completion of the transaction, it would continue to operate from its current headquarters in Portland, Oregon with its teams, operating facilities, strategy, and brands retained.

Overall, RDUS ranks 4th on our list of stocks that posted double-, triple-digit gains last week. While we acknowledge the potential of RDUS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RDUS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.