Xanadu Shares Plunged 56.2% in September as March Merger Lockup Expired
Updated
Updated · Yahoo Finance · Oct 4
Xanadu Shares Plunged 56.2% in September as March Merger Lockup Expired
2 articles · Updated · Yahoo Finance · Oct 4
Summary
Xanadu stock sank 56.2% in September after its post-merger lockup expired on Sept. 22, freeing early investors and insiders to sell shares.
32% of the drop had already occurred before the expiration, with shares falling from end-August through Sept. 21 despite no negative company news, then tumbling another 27.5% on Sept. 22.
Lower closes persisted for nearly the rest of the month, interrupted only on Sept. 28 and Sept. 29 when the stock finished at $4.77.
September’s slide came even as Xanadu announced collaborations with ASML and AMD and won a new RBC Capital outperform rating with a $16 price target.
The move underscores how lockup-driven selling pressure can overwhelm positive operating developments in newly merged growth stocks.