Eastman Kodak's stock is experiencing an after-hours surge, driven by the company's recent financial maneuvers. Kodak has successfully closed a significant Pension to Cash conversion deal, which involved terminating an overfunded pension by $1 billion. This strategic move has bolstered Kodak's cash reserves, now totaling $1.4 billion, significantly enhancing its financial position. The market has responded positively to this development, viewing it as a substantial step towards unlocking shareholder value and addressing the company's undervaluation.
Additionally, there is a growing interest in film photography, which has contributed to increased sales and a corresponding spike in Kodak's stock activity. This resurgence in traditional photography has been noted as a factor in the stock's upward momentum, reflecting a broader market trend that favors Kodak's core business areas.
Kodak's stock rose 2.07% in after-hours trading to $7.40, following a 1.54% increase to close at $7.25 on November 29, 2024.