DPHC - Why Workhorse Group Stock Is Rising Today
Shares of electric delivery-van maker Workhorse Group (NASDAQ: WKHS) were trading higher on Monday. The company holds a roughly 10% stake in electric-pickup start-up Lordstown Motors, which revealed plans to go public via a reverse merger with DiamondPeak Holdings (NASDAQ: DPHC) before the markets opened on Monday.
As of 10:45 a.m. EDT, Workhorse's shares were up about 11.8% from Friday's closing price.
Sometimes it's hard to tell exactly what is pushing a stock's price higher. Not today: The deal to take Lordstown Motors public will dramatically increase the value of Workhorse's stake in Lordstown and (in time) give it a cash flow from royalties. Obviously, that's very good news for the company.