Why the Pilbara Minerals (ASX:PLS) share price is up 9% this Thursday

What is moving the lithium producer’s share price this Thursday?
The post Why the Pilbara Minerals (ASX:PLS) share price is up 9% this Thursday appeared first on The Motley Fool Australia. –

The Pilbara Minerals Ltd (ASX: PLS) share price is on fire today. Pilbara shares are up 9.9% so far this Thursday and are currently trading at $1.69 a share after closing at $1.54 yesterday and opening at $1.58 this morning.

$1.69 a share is a new 52-week, and an all-time high share price for Pilbara. The company is now up an incredible 93.1% year to date in 2021 so far, and up an even more astonishing 425% over the past 12 months.

Pilbara shares are also topping the ASX boards in terms of trading volume today. Out of all the S&P/ASX 200 Index (ASX: XJO) shares on the markets today, Pilbara shares have swapped hands the most frequently so far, with more than 20 million shares traded already (and it’s only lunchtime).

So what on earth is going on with this lithium producer this Thursday?

Why is the Pilbara Minerals share price on fire today?

Well, it’s hard to say. There has been no real news or announcements out of the company today. Well, save for some routine paperwork that was released yesterday afternoon after market close. This informed investors that Pilbara will be delivering a quarterly business trading update on 29 July. But that’s probably not what’s getting investors hot under the collar today.

One possible source of optimism here might be the update from fellow ASX lithium producer Galaxy Resources Limited (ASX: GXY) that we saw delivered this morning. As my Fool colleague James covered earlier today, Galaxy reported record quarterly production for the second quarter.

Management also stated that the company “continues to experience strong demand” for lithium products amid rising global electric vehicle sales and strong demand from the Chinese market in particular.

Galaxy shares are also up big today, rising 10% so far to $4.40 a share, as well as hitting a new all-time high of its own.

Galaxy and Pilbara are essentially competing in the same market with the same commodity. So what is good for the goose is generally good for the gander here. As such, it’s not too surprising that goodwill from Galaxy’s results would spill over into the Pilbara Minerals share price.

Where Pilbara shares currently stand, the company has a market capitalisation of $4.44 billion.

The post Why the Pilbara Minerals (ASX:PLS) share price is up 9% this Thursday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pilbara Minerals right now?

Before you consider Pilbara Minerals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 midday update: Zip update disappoints, BHP signs Tesla deal

Why the Galaxy (ASX:GXY) share price is up 6% to a multi-year high
Top broker delivers verdict on Santos (ASX:STO) merger with Oil Search (ASX:OSH)
Why Credit Corp, Oil Search, Pilbara Minerals, & PointsBet are charging higher

ASX 200 midday update: Kogan FY 2021 update, Altium sinks

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!