Why Did RYTHM (RYM) Stock Jump Over 23% Overnight?

Benzinga11-12

RYTHM Inc. (NASDAQ:RYM) shares surged 23.3% in after-hours trading on Tuesday, closing at $30.

Check out the current price of RYM stock here.

According to Benzinga Pro data, the stock fell 21.52% in regular trading on Tuesday, closing at $24.33.

Q3 Financial Performance Drives Momentum

The Illinois-based company reported third-quarter revenue from continuing operations of $4 million, up 98% from $2 million in the previous quarter, according to a Nov. 7 company statement. The company ended the quarter with $35.6 million in cash, despite recording an $8.9 million operating loss from continuing operations.

Retail Expansion Fuels Investor Optimism

RYTHM's flagship Señorita THC Margaritas, a premium hemp-derived THC beverage, has launched in more than 1,000 Circle K convenience stores nationwide, marking the largest U.S. convenience store rollout for a hemp-derived THC drink. The brand also made its debut in select Minnesota Target stores as part of the retailer's pilot program for THC beverages.

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Strategic Brand Acquisition Strengthens Portfolio

On Aug. 27, the company acquired intellectual property for iconic brands including RYTHM, Dogwalkers, Beboe and incredibles, according to the announcement.

The company changed its name from Agrify Corporation to RYTHM Inc. on Sept. 2.

Market Position And Outlook

"Adult consumers, especially younger generations, are increasingly choosing THC beverages as an alternative to alcohol,” CEO Ben Kovler said, noting that the company is well-positioned to capitalize on growing mainstream THC acceptance through both licensing and direct revenue streams.

Stock Performance

The stock of the hemp beverage company is down 46.54% over the past month.

With a market capitalization of $48.72 million, the stock has a 52-week range of $5.02 to $84.44.

Benzinga Edge Stock Rankings indicate that IOVA stock has a negative price trend across all time frames. See how other companies in the sector are performing.

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