Shares of PLBY Group (PLBY -1.88%), which describes itself as a pleasure and leisure company, rose as much as 20% in early trading today. Nearly two hours into the trading day, it was still up an impressive 18%. It posted sizable gains the day before, as well.
There didn't appear to be any material news out today about the company, so it's likely that today's gains are a follow on to yesterday's rally. That's not uncommon, as stocks with big daily price moves often catch investors' attention. If the gain is news driven, as was the case for PLBY Group yesterday, new investors often pile in. So the big question today probably is: What happened yesterday?
The quick answer is that research firm Hedgeye labeled PLBY Group a "best idea" stock. Analyst calls like this tend to be well received by investors, so a stock rise is understandable. But Hedgeye is fairly well respected, and its take on the stock was pretty notable, suggesting that PLBY could be a 10-bagger. The upside potential of the stock was described as "simply massive." With praise like that, you can see how investors late to the party might still be willing to jump aboard.
PLBY, which is probably best known for owning Playboy magazine, has only been public since early February, formed via a "blank check" company. The stock is already up 180%, including the last two days' worth of gains. That's a massive stock increase in only two months or so of trading. And yet PLBY Group won't provide a full quarter's worth of financial results until its second-quarter financials come out (because of the mid-quarter timing of the IPO).