Courtesy of Benzinga.
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
ITT Educational Services, Inc. (NYSE: ESI) shares were trading higher by $1.28 (28 percent) at $5.65 in Monday’s session. The issue has rallied roughly 145 percent since ending Thursday’s session at $2.41.
The rally began on Friday when the Street learned of its FY14 EPS of $1.23 vs. $1.02 estimates. The report, which came out around 10 a.m. ET on Friday, ignited a over a $1 rally in a matter in a minutes for the low-priced issue taking it into the $4 handle. Later in the day, it reached $4.85 before falling back to settle at $4.37.
As a result of the large price increase on much heavier than average volume, momentum traders piled into the issue, instigating a sharply higher Monday open ($5.15 vs. Friday’s close of $4.37). Following a retreat to just below Friday’s high ($4.85), reaching $4.75, the rally resumed.
So far, it reached $6.32 before falling back under $6. That marks the highest level for the issue since it traded to $7.19 in April.
ITT is a long, long way from its all-time high of $133.75 and much closer to its all-time low made in October 2014 at $3.66.
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