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Tuesday, February 7, 2023

Armstrong (NYSE: AFI) Stock Jumped 35%. Here’s Why

Shares of Armstrong Flooring, Inc. (NYSE: AFI) jumped 35.84% at the time of writing. The positive performance of the company’s shares has highlighted the positive sentiments of the investors after the company disclosed it is searching for a sale as well as other strategic options. The company revealed that it has kept Houlihan Lokey Capital on possible options to increase shareholder value.

Since the pandemic hit the world, the company has been facing various challenges. AFI has been experiencing losses for several quarters as the pandemic hit demand for its flooring products. Expensive raw materials have also affected margins while the company tried to reduce the impact through the price increase. Receivables from clients also increase in this time.

Armstrong Flooring, Inc. (NYSE: AFI) shares were trading up 35.84% at the time of writing on Monday. Armstrong Flooring, Inc. (NYSE: AFI) share price went from a low point around $1.68 to briefly over $6.96 in past 52 weeks, though shares have since pulled back to $2.66. AFI’s market cap has remained high, hitting $41.30 million at the time of writing.

Furthermore, the manufacturer of flooring solutions revealed that it has obtained $35 million in term loans from its lenders to continue its operational and strategic goals. The new loan facility is available through June. Moreover, the company almost doubled its adjusted net loss to $60 million for the nine months ended September 30.

In addition, the company has also witnessed an adjusted net loss of $59 million on net sales of $585 million in the year completed December 2020. The company had booked an adjusted loss of $40 million in 2019.

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