ESTUN Automation's stock plummeted 6.75% during the morning trading session on Monday, following a significant rally in the previous week.
The decline is widely viewed as natural profit-taking activity after the stock surged nearly 46% in the prior week. That remarkable rally was driven by multiple catalysts including the company's planned all-cash acquisition of Estun Codroid Technology to gain full ownership of the embodied intelligence robot maker, and Morgan Stanley's upward revision of humanoid robot shipment forecasts to 50,000 units.
The selling pressure intensified after a large block trade was executed, triggering broader market selling momentum. Within the Industrial Machinery sector, peers also traded lower, indicating broader sector weakness contributing to the decline.
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