The r/WallStreetBets crowd that’s stalking short sellers and fueled the GameStop (NYSE:GME) rally on the popular Reddit forum shows no signs of stopping anytime soon. Thursday’s pre-market trading shows that Tanger Factory Outlet Centers (NYSE:SKT) could be in their sights. SKT stock is up more than 25% as of 7:30 a.m. Eastern.
Over on the subreddit, SKT stock is an equity du jour, with one member decrying they “just had to buy” Tanger stock, while another outlined the “bullish” case as to why the retail center operator was an undervalued buy.
The chatter comes as Tanger is the second most-shorted stock after GameStop, showing short interest of 39.98%, according to HighShortInterest.com, which tracks stocks with short interest of more than 20%.
Tanger shares have been struggling over the past year and the stock price is currently below its pre-pandemic level.
SKT Stock Tipped as One Hedge Funders Feared
InvestorPlace contributor Joel Baglole last month include SKT stock among the seven names “Hedge Funds Fear Could Be Next Redditor Short-Squeeze Target.” His analysis noted that Tanger had the attributes and short interest that the r/WallStreetBets crowd likes.
Greensboro, North Carolina-based Tanger operates 32 outlet center malls in the U.S. and Canada. Few institutional investors expect shoppers to return to the outlet malls that Tanger operates anytime soon — not with the convenience of having everything we want and need delivered to our front doors.
At the end of January, Tanger’s stock suddenly jumped 50% to nearly $18 a share. The sudden move higher was partly attributed to the company reinstating its dividend. But a few days later, the stock price was back down under $13. The volatile move led many on Wall Street to add Tanger’s stock to their short-squeeze watch list.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.