Ultra Low Float Stock Catapults 136% on Stellar Earnings

With only 263,000 shares in its public float, this low float fintech player saw its stock skyrocket following the release of its second-quarter financial results.

S.C. Atkins February 24, 2025Last Updated: February 25, 2025

3 minutes read

Businessman in black suit points to rising red and green stock chart, with the words low float above it in white letters. — Source: Shutterstock

Shares of AtlasClear Holdings (NYSE Arca: ATCH) took off like a bolt of lightning on Monday, climbing 136.6% to close the day at $5.56. At its intra-day peak, AtlasClear shares were up by as much as 461%. The dramatic uptick in AtlasClear stock follows the release of its second-quarter financial results for the period ending December 31, 2024, highlighting stellar growth and strategic advancements.

Also Read: Why This Low Float Biotech Stock Looks Ripe for Another Big Breakout

Our email list eats first! Get exclusive alerts on explosive stock picks like AST SpaceMobile (NASDAQ: ASTS), which shot up +533% after our profile. Get our email signals based on our proprietary 5-indicator system before any of our other platforms by clicking here.

Financial Performance Highlights

For the 2024 calendar year, AtlasClear’s subsidiary, Wilson-Davis, reported standalone, non-GAAP revenue exceeding $13.2 million and net income surpassing $1.75 million. This performance underscores the company’s consistent quarterly growth and the successful expansion of its core operations, particularly within the investment banking sector.

Despite these impressive figures, as of Friday’s market close, AtlasClear’s market capitalization stood at less than $1 million, approximately 50% of its annual net income. This discrepancy suggests a potential undervaluation of the company’s stock.

AtlasClear President Craig Ridenhour addressed this, stating:

“We will continue to work to improve our performance, with the hope that it will reflect in our share value. As we stand today, our current Market Capital is approximately 50% of the Net Income earned for the Calendar year on a standalone basis, which we think is value.”

Strategic Partnerships and Technological Enhancements

In addition to its financial achievements, AtlasClear has been proactive in enhancing its technological infrastructure. The company recently entered into a strategic partnership with LocBox, a web-based platform specializing in stock loan inventory management. This collaboration aims to bolster AtlasClear’s correspondent clearing services through Wilson-Davis, enabling more efficient management of hard-to-borrow stock inventories.

Executive Chairman John Schaible expressed enthusiasm about the company’s trajectory, stating:

“We are excited with the release of our December 31st quarterly numbers. They represent our ongoing improvement in core operations. The numbers reflect continuous quarterly growth and a significant increase in net income on a standalone, non-GAAP basis for Wilson-Davis. Business lines are expanding, including our investment banking business, and we believe we have a bright future in front of us. For Calendar Year 2024, on a standalone, Non-GAAP basis for Wilson Davis, we generated over $13.2 million in Revenue with Net Income of over $1.75 million.”

Read Now: Why This Electric Vehicle Market Player’s Proprietary Battery-Swapping Technology is a Game-Changer

Market Dynamics and Stock Volatility

It’s important to note that AtlasClear Holdings is considered a low-float stock, with only 263,000 shares available for public trading, according to Benzinga. Such stocks are often subject to significant volatility. On Monday, the stock was temporarily halted in early trading due to triggering the volatility circuit breaker. After resuming, shares skyrocketed, reflecting heightened investor interest and market activity.

Investor Outlook

The combination of strong financial performance, strategic partnerships, and technological advancements positions AtlasClear Holdings favorably for future growth. The recent surge in stock price may indicate a market correction, aligning the company’s valuation more closely with its financial health and operational success.

As AtlasClear continues to execute its strategic initiatives and expand its service offerings, investors will likely closely monitor the company’s developments, anticipating sustained growth and value creation in the evolving financial services landscape.

AtlasClear Holdings (ATCH) Stock Price Action and Chart

Shares of AtlasClear Holdings (NYSE Arca: ATCH) stock soared 136.6% during Monday’s trading session, closing the day at $5.56.

During intra-day trading, ATCH stock skyrocketed by as much as 461%, reaching a high of $13.19, before profit-taking kicked in and much of those gains were erased.

YTD, AtlasClear stock is down 44.68%.