ASX investigates after Douugh (ASX:DOU) share price spikes 56%

The Douugh Ltd (ASX:DOU) share price spiked more than 50% today. Why this massive move in the ASX fintech company’s share price?

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The Douugh Ltd (ASX: DOU) share price is going gangbusters today. Douugh shares are up 14.58% at the time of writing to 27.5 cents a share. Douugh closed at just 24 cents a share last Friday, and actually opened even lower this morning at 23 cents. However, just after open, the Douugh share price went from a low of 22 cents all the way up to 37.5 cents before settling at its current level.

The current price represents the highest levels Douugh has been at since mid-November last year. That was just before the company’s shares were placed in a lengthy trading halt.

No major Douugh news

Normally, a 50% jump in a company’s share price is sparked by something substantial, such as a company announcement or a piece of significant news.

However, the reason the Douugh share price is spiking today is unclear. There are no official major announcements or noteworthy news to speak of out of the fintech company today.

The ASX has sent Douugh a ‘please explain’ following the price moves this morning. In its response, Douugh has told the ASX it is unaware of anything that could have sauced this share price spike. It referred the ASX to some recent announcements regarding its acquisition of Goodments, as well as last week’s revelation of a new product.

That latter announcement came on Tuesday, when Douugh announced it had launched a new product called ‘Autopilot’ within its financial wellbeing app. Autopilot contains a number of “self-driving” cash management features, such as Salary Sweeper. This helps users automatically allocate their cashflow to expense accounts and the like.

Of course, Douugh shares only resumed trading on 5 February after six weeks in a trading-halt purgatory. That trading halt was imposed after the ASX initiated an investigation into Douugh over some potentially improper share trading by the parents of director Bert Mondello. Douugh has since told investors that it will hold a general meeting to ask investors for permission to initiate a capital reduction to compensate for the issuance of the shares in question. The profits that Mr Mondello’s parents made from the sale of the shares will also be donated to charity.

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Motley Fool contributor Sebastian Bowen 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.

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