What's Going On With Faraday Future's Stock Friday?

Faraday Future Intelligent Electric Inc. FFIE shares closed lower on Friday, reversing from earlier gains. Here's a look at what's going on. 

The Details:

Faraday Future's stock saw massive price moves related to the retail-fueled meme stock rally which saw heavily-shorted stocks gaining alongside GameStop and AMC Entertainment shares. The stock was up more than 8000% over the past week and reached an intraday high of $3.90 Friday before reversing.

Faraday Future shares are moving on heavy trading volume Friday with more than 1.2 billion shares changing hands. According to data from Benzinga Pro, the stock’s 100-day average volume is 103.556 million shares and 85.71% of shares are being sold short. 

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Is FFIE A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Faraday Future‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Faraday Future (does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 8.19%, you'll need to buy a share of Bancroft Fund by June 13, 2024. Once done, you can expect to receive a nominal payout of $0.32 on June 21.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Faraday Future will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

FFIE Price Action: According to Benzinga Pro, Faraday Future shares closed down 37.58% at $1.03.

Image: Courtesy of Faraday Future Intelligent Electric, Inc.