Lordstown Motors (NASDAQ:RIDE) stock is picking up speed on Wednesday as high short interest in the company is bringing in extra interest from traders.
Ihor Dusaniwsky, Managing Director at S3 Partners, took to Twitter (NYSE:TWTR) to highlight some of the details that investors need to know about the stock. He posted that short interest in the company is sitting at $203 million.
$RIDE short interest is $203M
32.88M shares shorted
29.50 % SI% of Float
22.78 % S3 SI% Float
1.57 % fee
Shares shorted up +3M shs, worth $21M, 11.34 %, over the last week.
Shorts up +$228M in 2021 mark-to-market profits;
including -$9M on today’s +4.26 % move. pic.twitter.com/VBUtpuiaEs
— Ihor Dusaniwsky (@ihors3) September 13, 2021
The high short interest in RIDE stock means it could be about to see a squeeze from traders. Retail traders love a good short-squeeze and the low entry point for RIDE stock makes it a strong candidate.
Of course, this also means we might see a surge in price for RIDE stock that quickly falls once retail traders are done with it. That’s one of the dangers that come with investing in penny stocks. So just make sure you aren’t left holding the bag at the end of all this.
In terms of trading volume, RIDE isn’t doing bad today. There’s also been some 10 million shares of the stock change hands as of this writing. That’s approaching the company’s daily average trading volume of about 11.1 million shares. We could see that number rise higher in the company days if a short-squeeze happens.
RIDE stock was up 9% as of Wednesday afternoon but is down 65.8% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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