Home Top Movers CarLotz, Inc. (LOTZ) Stock Trending Down Following Halting of Consignment from Sourcing...

CarLotz, Inc. (LOTZ) Stock Trending Down Following Halting of Consignment from Sourcing Partner

CarLotz, Inc. (LOTZ) stock prices were down by 1.51% as of the market closing on May 25th, 2021, bringing the price per share down to USD$5.21 at the end of the trading day. Subsequent pre-market fluctuations saw the stock fall by 19.19%, down to USD$4.21.

Get the hottest stocks to trade every day before the market opens 100% ‎free. Click here now. 

Pausing of Consignments

In a Form 8-K filed with the SEC, the company stated the pausing of consignments to the company from LOTZ’s corporate vehicle sourcing partner. The sourcing partner cited the current deplorable wholesale market conditions as the driving force behind this. Over the course of the quarter ended March 31st, 2021, the sourcing partner accounted for more than 60% of the cars sold and sourced. For the second time in the company’s history, the sourcing partner accounted for less than 50% of the cars sold and roughly 255 of cars sourced.

5 Stocks Under $10 That Are Poised to Take Off

Investing in stocks under $10 could significantly increase the returns on your portfolio, especially if you pick the right stocks! Within this report you will find 5 top stocks that offer investors huge upside potential and the best bang for their buck.

Add them to your watchlist before they take off!

Get the Top 5 Stocks Now!

Sponsored

Read More

Devastated Wholesale Vehicle Market

The increase in pricing of wholesale vehicles and the ongoing new car chip shortage has been a persistent obstacle in the sourcing of inventory throughout the industry. In conjunction with the pausing of the company’s profit sharing account, the company has reported severe challenges in meeting their expected inventory levels.

Coping with Challenges

As a means of coping with this challenge, the company has been taking steps over the last several months to consolidate their sourcing from other channels. Based on these steps, LOTZ anticipates increased access to vehicles from consumer consignments, trade-ins, and consumer purchases. The company also anticipates an enhancing of their ability to source vehicles through auctions profitably. LOTZ has reiterated its commitment to increasing non-competitive sourcing through consignment and bulk buys by including new corporate sourcing accounts.

Opening of New Hubs

The company’s newest hubs performed well, with the new hub pipeline staying strong as the company continues to expect the opening of 14 to 16 hubs over the course of 2021. As a result of various factors including negotiations, licensing, and zoning, the makeup and expected timeline of the rollout of the pipeline has changed. Consequently, the grand openings of a handful of the new hub locations will take place further along in the year than was originally planned. Furthermore, the 2021 contribution from those hubs is expected to be less than hitherto thought because of the timing.

Get the hottest stocks to trade every day before the market opens 100% ‎free. Click here now. 

Future Outlook for LOTZ

While the ongoing challenges in the overall sector have affected the performance of LOTZ stock prices, the company is confident in the growth expected from the opening of their new hubs until the wholesale vehicle market stabilizes. Current and potential investors are hopeful that the company will continue to leverage the resources at its disposal to usher in significant and sustained increases in value.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Must Read

Torchlight Energy Resources Inc. (TRCH) stock surged during current market trading. Here’s to know why?

Torchlight Energy Resources Inc. (NASDAQ: TRCH) stock gained by 41.33% in the current market trading session. Torchlight Energy Resources is a vast growing oil...

The9 Ltd. (NCTY) stock declined during pre-market trading. Here’s the update

The9 Ltd. (NASDAQ: NCTY) stock plunged by 12% at the last close while the NCTY stock price fell by 7.03% during pre-market trading. The9...

The Dixie Group Inc. (DXYN) stock surged during pre-market trading given no recent news

The Dixie Group Inc. (NASDAQ: DXYN) stock gained by 11.55% in the pre-market trading session. However, there is no update available regarding this hike...

Why BancorpSouth Bank (BXS) stock plummeted on Friday?

BancorpSouth Bank (BXS) shares plummeted 9.39% in after-hours on Friday, June 18, 2021, and close the weekly business at $25.00 per share. Earlier, BXS's...

CureVac Inc. (CVAC) stock soar during pre-market trading. Here’s what you should know?

CureVac Inc. (NASDAQ: CVAC) stock declined by 38.99% at the last close while the CVAC stock price gains by 11.34% in the pre-market trading...

Anavex Inc. (AVXL) stock soars during pre-market trading. Let’s see why?

Anavex Inc. (AVXL) stock gained by 4.29% at the last close while the AVXL stock price surged by 12.38% in the pre-market trading session....

The9 Ltd. (NCTY) stock declined during pre-market trading. Here’s the update

The9 Ltd. (NASDAQ: NCTY) stock plunged by 12% at the last close while the NCTY stock price fell by 7.03% during pre-market trading. The9...

The Dixie Group Inc. (DXYN) stock surged during pre-market trading given no recent news

The Dixie Group Inc. (NASDAQ: DXYN) stock gained by 11.55% in the pre-market trading session. However, there is no update available regarding this hike...

Related News

Why Eyenovia Inc. (EYEN) stock price went up in the after-market on Friday?

Eyenovia Inc. (EYEN) shares pop up 8.41% in after-hours on Friday, June 18, 2021, and close the week at $5.80 per share. Earlier, EYEN's...

CorMedix Inc. (CRMD) stock surged during after-hour session. What has been happening lately?

CorMedix Inc. (NASDAQ: CRMD) stock fell by 1.91% at last close while the CRMD stock price gains by 6.49% in the after-hours session. There...

Edesa Biotech Inc. (EDSA) stock surged during current market trading. Here’s to know why?

Edesa Biotech Inc. (NASDAQ: EDSA) stock gained by 4.22% in the current market trading. Edesa Biotech is a clinical-stage biopharmaceutical business dedicated on the...

VivoPower International Inc. (VVPR) stock soars during pre-market trading. What’s driving it high?

VivoPower International Inc. (NASDAQ: VVPR) stock gained by 1.13% at last close while the VVPR stock price surged during pre-market trading by 1.54%. VivoPower...

Cleveland BioLabs Inc. (CBLI) stock surged during after-hour session. Here’s what’s happening?

Cleveland BioLabs Inc. (NASDAQ: CBLI) stock declined by 3.58% at the last close while the CBLI stock price gains by 17.53% during the after-hour...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

We do not sell or share your information with anyone.

Get Notified Of Insider Trades, Analyst Upgrades & Downgrades, Earnings Updates & Best Stocks To Trade Every Single Morning

100% free. stop anytime no spam