Sprint stock tacked on another 5% in value Wednesday, which followed a nearly 8% gain the previous day on comments from parent company SoftBank
Sprint’s stock continued to surge Wednesday, one day after comments from chairman Masayoshi Son boosted the carrier’s stock nearly 8%.
Investor enthusiasm for Sprint resulted in a more than 5% gain in share price Wednesday, with the carrier’s stock (S) at one point hitting $4.47 per share, before closing at $4.38 per share. Trade volume was down a bit from the previous day, but still more than double the normal activity. The rise also comes despite a broader downward trend Wednesday on the New York Stock Exchange.
Sprint’s stock is still trading well below its 52-week high of $5.29 per share, but has made a nice rebound from its low of $2.18 per share touched on Jan. 20.
The run followed news from SoftBank that Group President and COO Nikesh Arora is set to leave those positions July 1, taking up an advisory role for the Japan-based firm. The move is also expected to see Arora relinquish his current position on the board of directors at SoftBank subsidiary Sprint. Son, who serves as CEO and chairman at Softbank, named Arora to Sprint’s board of directors last November in a move expanding the carrier’s board to nine members and with an intent to provide greater leadership for Sprint.
In announcing Arora’s departure, Son noted his continued support of Sprint, which continues to struggle in finding its footing. SoftBank gained control of Sprint in mid-2013, and has since invested heavily in its U.S. operations.
“I want to cement SoftBank 2.0, develop Sprint to its true potential and work on a few more crazy ideas,” Son said in a statement. “This will require me to be CEO for at least another five to 10 years – this is not a time frame for me to keep Nikesh waiting for the top job.”
Sprint’s stock surge also is good news for CEO Marcelo Claure, who, in extending his contract with the company last year, included a bonus structure tied to Sprint’s stock rising to $8 per share, which the stock has not seen since mid-2014.
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