2U, Inc. (NASDAQ:TWOU) shares are trading higher Monday. The volatility comes after the company filed for Chapter 11 bankruptcy protection last week.
The Details:
2U shares crashed last week after the company announced it had filed for Chapter 11 bankruptcy protection amid financial challenges and a heavily leveraged balance sheet. The company announced a deal with its lenders and noteholders to cut its debt load by 50% to $459 million, extend the maturity of its loans and provide $110 million in new capital.
Needham analyst Ryan MacDonald reiterated a Hold rating on 2U Friday. The stock is rebounding on heavy volume Monday with more than 58 million shares already traded, according to data from Benzinga Pro.
Should I Sell My TWOU Stock?
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.
TWOU Price Action: According to Benzinga Pro, 2U shares are up 111% at $2.64 at the time of publication Monday.
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