What's Going On With Kaival Brands Stock?

Kaival Brands Innovations Group, Inc. KAVL shares are trading higher Friday after the company announced a $5 million offering of 3,012,048 units at $1.66 per unit.

The Details:

According to an SEC filing, each unit consists of one share of common stock and one and one-half common warrants to purchase one and one-half shares of common stock, at an assumed offering price of $1.66 per unit, for gross proceeds of up to $5 million.

Kaival Brands is engaged in the sale, marketing and distribution of electronic nicotine delivery system (ENDS) products and related components. Its primary product is the Bidi Stick. 

Kaival Brands shares are racing higher on heavy trading volume Friday and trading has been halted for volatility multiple times. According to data from Benzinga Pro, more than 48.5 million shares have been traded in the session, compared to the stock’s 100-day average of 2.515 million shares.

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Should I Sell My KAVL Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Kaival Brands Innovations have decreased by 66.46% in the past year. An investor who bought shares of Kaival Brands Innovations at the beginning of the year would make a profit of $0.86 per share if they sold it today. The stock has risen 72.17% over the past month, meaning an investor who bought shares on May 1 would see a capital gain of $0.65.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Kaival Brands Innovations stock currently has an RSI of 44.81, indicating neutral conditions.

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KAVL Price Action: According to Benzinga Pro, Kaival Brands shares are up 292% at $5.33 at the time of publication Friday.

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