The stock of KOSS Corporation (KOSS) surged about 54.96% in the last trading session and extended rally by another 50% gain in extended hour. It recently closed at $18.44, fluctuating in a day’s range from $11.88 to $20.28.
Koss Corp is an American company that deals with the manufacturing and designing of headphones. Not just in USA but also around the globe Apple is considered as the top best company for manufacturing audio accessories but in 2021 Koss Corp has become a bigger name than Apple.
Why is it happening?
Koss in comparison with Apple is not a very reliable company in terms of their product quality. Apple undoubtedly makes the best audio accessories and with the innovation of their Bluetooth air pods they have reached to another level. Therefore this sudden upsurge in the stock of Koss Corp is not because of them entirely rather they owe this to the infamous traders of Reddit. KOSS has not been doing anything which could justify this increase in their stock yet the actual credit goes to retail traders using Reddit banding together which has driven the KOSS shares up.
The KOSS members and their executives have taken advantage of this dramatic increase by selling their shares. They have acted fast by selling stock worth of $31 million. Company executives and directors sold an additional $13 million in shares.
KOSS Corporation has been in market for decades and there is nothing wrong with the company but they are also not matching up with market demand. KOSS is not a growth stock and also they have not been paying dividends since 2014. They have shown a decent upsurge in 2021 but that is solely because of Reddit factor.
We cannot expect this upsurge to last for a long time because of company’s uncertain position in the market. It has just been three weeks of progress and KOSS has already started giving back most of the gain and to be realistic it is expected that this slide will continue.