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Diebold Nixdorf Stock Is Soaring on Monday -- Here's Why

A person is pulling a debit card out of an ATM.

What happened

It's been a rough couple of weeks for Diebold Nixdorf (NYSE: DBD) shareholders. After a disappointing earnings report that included the company saying it may have trouble with its debt load, and a subsequent wave of short-selling, Diebold plunged by a staggering 65% during the first nine days of August.

On Monday, however, shareholders finally got a bit of hopeful news with CNBC reporting that the company has hired advisors to pursue a sale of itself.

Separately, Diebold released a statement updating its shareholders about its debt issues that had a pretty positive tone. According to the statement, Diebold "is in constructive and productive discussions with its lenders regarding its future financial flexibility and expects to reach a resolution in the near term."

A person is pulling a debit card out of an ATM.

Image source: Getty Images.

So what

The prospect of a sale combined with some reassurance about the company's debt seems to be putting a temporary stop to investor pessimism. It's also likely that it is causing some of the short-sellers to abandon their positions in fear of a sale of the company at a hefty premium.

Now what

To be clear, a sale of Diebold is far from a sure thing. The report said that no advanced talks have taken place so far. It also said that it's too early to speculate on a potential buyout price.

However, this seems to have shareholders excited about the possibility, and has caused a major jump in the stock price (at least for the time being). As of 3 p.m. EDT, Diebold's stock was up by more than 16% on the day.

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Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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