Maxim Group: No Fundamentals Behind Recent Spike In Pyxis Tankers

Pyxis Tankers Inc PXS shares more than doubled last Friday, closing at $4.10, up 103 percent from the previous session. The spike isn't supported by the fundamentals at Pyxis, according to Maxim Group.

The Analyst

Maxim Group analyst James Jang downgraded Pyxis Tankers from Buy to Hold, citing the stock's move above its $3 price target on unusual volumes without the backing of fundamentals.

The Thesis

Maxim Group has been unable to substantiate Pyxis' price movement using its source and channel checks, Jang said in a Monday note.

The product tanker sector has been steady since Maxim's Nov. 10 note on Pyxis, the analyst said.

Last week had some news flow in the sector, including Greenbriar's exit from its Ardmore Shipping Corp ASC investment and Scorpio Tankers Inc. STNG's $90 million offering. These two events, though not related to Pyxis, may have triggered interest in the sector and led to the unusual volume and sharp price movement in Pyxis shares, Jang said.

The Price Action

Pyxis stock, by virtue of last Friday's steep ascent, is up about 104 percent year-to-date. The stock rallied to an intraday high of $9.20 in the session, with roughly 14 million shares exchanging hands compared to the average volume of 266,136.

At the time of writing, Pyxis shares were rallying 37.56 percent to $5.64.

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