Arotech Corporation (ARTX) Up Big on Technicals and Apparent Stock Pump?


Shares of Arotech Corporation (NASDAQ:ARTX) are trading up huge this afternoon, even though the company has not released any recent news. This has left investors wondering what the cause of this jump has been. While it is hard to say for sure, apparently there are two factors that have caused the significant runup in price today.

One factor is that the share price of Arotech Corporation (NASDAQ:ARTX) has broken through the upper Bollinger Bands (volatility indicator). Oftentimes when this happens, day traders who rely on technical analysis for trading will purchase the stock.

The second factor, and probably the factor which is causing this stock to run the most, is that a popular newsletter just sent out an email which apparently has encouraged a large number of investors to go long in Arotech Corporation (NASDAQ:ARTX).

“Arotech Corporation (NASDAQ:ARTX) [is] hot on newsletter pump,” wrote one investor, who goes by the moniker, SG7416 on StockTwits.

The stock is up 17.84% or $0.38 following the news, hitting $2.51 per share. About 1.24 million shares traded hands or up 1315.23% from the average. ARTX has declined 17.44% since June 3, 2015 and is currently downtrending. It has underperformed the S&P500 by 11.59%.

The institutional sentiment is 0.92 in Q2 2015. It’s the same as in 2015Q2. The ratio has no change, as 9 funds sold all their Arotech Corporation shares they owned while 4 reduced their positions. only 4 funds bought stakes while 8 increased their total positions. Institutions now own 7.10 million shares which is 183.82% more than the previous share count of 2.50 million in 2015Q2.

Ancora Advisors Llc holds 0.04% of its total portfolio in Arotech Corporation, equating to 244,000 shares. Bridgeway Capital Management Inc owns 381,263 shares representing 0.01% of their total US portfolio. Moreover, Vanguard Group Inc has 0.01% of their total portfolio invested in the company, equating to 5.29 million shares. The New York-based American International Group Inc has a total of 0% of their portfolio invested in the stock. Aqr Capital Management Llc, a Connecticut-based fund reported 15,890 shares owned.

Arotech Corporation is a defense and security services and products company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and power systems and batteries for the military, commercial and medical markets. The company has a market cap of $53.43 million. The Firm operates in two divisions: Training and Simulation Division, and Power Systems Division. It currently has negative earnings. The Company’s Training and Simulation Division develops, makes and markets multimedia and interactive digital solutions for use-of-force training and driving training of military, law enforcement, security, emergency services and other personnel.