What Happened?
Shares of beverage company Zevia (NYSE: ZVIA) fell 4.5% in the afternoon session after a major shareholder, Caisse de dépôt et placement du Québec, sold a significant portion of its stake in the company.
The institution disclosed the sale of 3.5 million shares at an average price of $2.00 each, for a total transaction value of $7 million. This move reduced its position in the beverage company by more than 20%. Large sales by major investors can often unnerve the market, as they may suggest a lack of confidence in the company's future prospects. This type of selling pressure frequently leads to a decrease in the stock's price as other investors react to the news.
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What Is The Market Telling Us
Zevia’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 6.6% on the news that Telsey Advisory Group issued a positive "Outperform" rating on the stock. This rating indicated that the advisory firm's analysts expected Zevia's stock to perform better than the overall market. Such a positive outlook from a financial firm often boosts investor confidence in a company's prospects. This can lead to increased buying activity from investors, which helped push the share price higher.
Zevia is down 9.2% since the beginning of the year, and at $1.83 per share, it is trading 57.9% below its 52-week high of $4.33 from January 2025. Investors who bought $1,000 worth of Zevia’s shares at the IPO in July 2021 would now be looking at an investment worth $133.70.
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