The Zip Co Ltd (ASX: Z1P) share price is on fire once again on Tuesday. At one stage the buy now pay later (BNPL) provider's shares were up 15% to a record high of $14.53.
When the Zip share price hit that level, it stretched its year to date gain to an incredible 160%. Its shares have since pulled back but are still up a decent 6.5% to $13.48.
Why is the Zip share price charging higher?
Given that there have been no broker notes relating to Zip (that I'm aware of) nor any recent announcements, the meteoric rise in the Zip share price over the last couple of weeks has been a big surprise.
In fact, I'm not the only one that has been questioning this incredible rise. This morning Zip was given a speeding ticket by the Australian Stock Exchange.
The operator noted a strong rise in the Zip share price today and a significant increase in the volume of Zip shares traded this week.
In light of this, the ASX asked: "Is Z1P aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?"
Zip's response
After lunch, Zip responded to the price query request, advising that it is "not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities."
However, the company noted that there has been significant interest in the buy now pay later (BNPL) market generally, which may explain the rise.
In addition, it reminded the stock exchange operator of a couple of announcements in December and January that may have helped drive the Zip share price higher.
"(a) Successful placement in late 2020 and oversubscribed share purchase plan in early 2021 raising approximately $176.7 million in total (before costs) to fund Zip's US growth, UK expansion, new market investments and growth and to support continued investment in Australia and New Zealand's product range including scaling of Zip Business;."
"(b) A trading update for Q2FY21 announced on 21 January 2021, which confirmed extremely strong quarterly trading results year on year, including record results for Zip US (QuadPay)."
The company hasn't mentioned recent speculation of a secondary listing in the United States. This could mean it doesn't see the development as material or it isn't actually something the company is considering.
