Surf Air(SRFM) soars 54.72% on capital raise

Surf Air(SRFM) shares surged to their highest level since January 2025 today, with an intraday gain of 54.72%.

The strategy of buying SRFM shares after they reached a recent high and holding for one week resulted in significant underperformance. Over the past five years, the strategy yielded a return of -91.46%, compared to a benchmark return of 31.84%. The excess return was -123.31%, and the CAGR was -72.75%, indicating substantial losses. The strategy also had a high maximum drawdown of -94.26% and a Sharpe ratio of -0.50, reflecting significant risk and negative returns.

Surf Air Mobility recently announced a registered direct offering of $27 million, selling 10,800,002 shares at $2.50 per share. This news caused a significant drop in the stock price, with a notable 30% plunge following the announcement. The offering was part of the company's efforts to raise capital for its ongoing operations and future growth initiatives.

Despite the recent volatility, Surf Air Mobility has shown signs of recovery. Over the past four weeks, the company's stock price has increased by 44%, reflecting growing investor interest and confidence in the company's prospects. This upward trend suggests that investors are optimistic about the company's future performance and its ability to navigate the challenges in the market.

However, it is important to note that despite the recent rallies, the stock is still down 33.21% year-to-date. This indicates that while there has been some recovery, the stock price is still below its levels at the beginning of the year. The recent gains, however, suggest that the company may be on the path to recovery and that investors are becoming more bullish on its prospects.