Party City Stock Soars Ahead of Anticipated Bankruptcy Filing

Party City (NYSE: PRTY) stock is in the headlines today as investors anticipate the retail company's potential filing for bankruptcy. While no official filing has been made, multiple sources have reported on the likelihood of PRTY seeking to negotiate new terms with bondholders in order to retire old debt and pave the way for future operations.

Adding to these reports, insider sources claim that Party City has brought in AlixPartners, a restructuring advisor, to assist with the process. The combination of these debt negotiations and the hiring of a restructuring advisor suggests that the company is likely planning to use a bankruptcy filing to reorganize its business before emerging from bankruptcy.

However, it's important to note that a bankruptcy filing would typically cause a stock's price to plummet, but that might not be the case this time around. Recently, investors have been buying into stocks of companies nearing bankruptcy, such as Bed Bath & Beyond (NASDAQ: BBBY) shares.

This trend may already be happening with PRTY stock, as it has seen heavy trading with 37 million shares on the move this morning, compared to its daily average trading volume of 6.8 million shares.

Party City stock has seen significant gains in recent days, rising 117.91% yesterday and 38% in pre-market trading today. While it is possible that the stock may see further gains ahead of the filing, it's also worth noting that it could see a drop in the aftermath if investors sell off shares after the rally.

To stay informed about the buying and selling activity among institutional investors and insider trades of Party City stock, investors can visit the website https://tickertracker.io/stocks/prty. This site allows for easy tracking of the trading activity of institutional investors and any insider trades made by executives or other individuals within the company. By monitoring this activity, investors can gain valuable insights into the direction of the company and make more informed investment decisions.

This can help them to make a decision about the current situation of Party City and the company's future, if you are interested in investing in PRTY stock, it is important to keep an eye on this information and consider it as a part of your research.