Today, investors in Atossa Therapeutics (NASDAQ:ATOS) and ATOS stock are seeing double-digit gains on a very good day in the stock market. Speculative plays are once again in focus for investors. Accordingly, any reason to jump on smaller-cap stocks is a good one.
Indeed, Atossa is an intriguing stock to consider right now. This company started the year at less than $1 per share. Investors who have watched the meme stock rallies in various stock know where I’m headed with this. By early February, ATOS stock broke through $4, nearly hitting the $5 mark.
Given the recent support we’ve seen in speculative plays, ATOS stock has now broken through its 52-week high, trading above $8.
Indeed, a number of factors are at play with Atossa’s recent — and rapid — gains. Let’s dive into two of the catalysts driving this biopharma stock higher today.
ATOS Stock Surging on Two Key Catalysts
The first catalyst of note for ATOS stock is the company’s announcement last week that it would be listed on the Russell 2000 and Russell 3000 indices. This is big news for any stock, as it broadens out the investor base for such companies. Additionally, various index funds and ETFs are forced to buy stocks on an index inclusion. This bullish buying pressure tends to result in a surge of investor interest prior to the inclusion date. Currently, that date is set for June 28.
Additionally, ATOS stock has emerged as a popular social media play. Retail investors frequenting popular social media platforms such as Reddit for their financial advice have seen ATOS stock mentions surge of late. A lot of this probably has to do with the company’s recent index inclusions. However, it’s worth noting Atossa is a company that is also heavily shorted. This provides the impetus for investors to jump on this company as a potential short squeeze.
Right now, it appears a perfect storm is brewing for ATOS. Accordingly, investors interested in such highly speculative plays are gravitating toward Atossa today.
On the date of publication, Chris MacDonald 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.