NEW YORK (TheStreet) -- Diamond Resorts (DRII) stock is up by 23.44% to $23.59 on heavy trading volume on Thursday morning, after the company said it is exploring "strategic alternatives to maximize shareholder value."
The Las Vegas-based operator of resorts announced on Wednesday that it formed a committee of independent directors to explore its options.
Diamond Resorts hired CenterviewPartners, an investment bank, as its financial adviser.
"There continues to be a significant dislocation between the intrinsic value we have built in this business and the market value of our public equity," CEO David Palmer said in a statement. "For this reason, our Board of Directors is initiating a process to explore and evaluate a wide range of strategic alternatives to unlock value for shareholders."
So far today, 2.64 million shares of Diamond Resorts have traded, compared to the company's 30-day average of 1.44 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: DRII