Today, investors in SmileDirectClub (NASDAQ:SDC) and SDC stock are certainly smiling. Shares of this oral care company have skyrocketed more than 10% today on extremely heavy volume.
Like many other consumer-facing businesses with in-person business components, SmileDirectClub has been hit hard by the pandemic. SDC stock went from pre-pandemic levels around $15 to around $4 per share at the onset of the pandemic. With today’s rise, SDC has made up most of its losses, trading above $10 per share once again.
Indeed, the company has made a series of strategic moves to combat the effects of the pandemic in the past. The company has provided an at-home impression kit program to provide oral care remotely. Additionally, it has announced it will be providing its telehealth platform free of charge to dental providers in order to promote such remote care.
Of course, these impacts provided near-term earnings headwinds for the company. However, as the pandemic (hopefully) nears its close, investors appear willing to jump back into this name.
Today, it appears some heavy retail buying is leading the charge in the rise of SDC stock. Let’s dive into why there’s so much excitement around SDC stock right now.
Retail Investors Betting Big on SDC Stock
Today’s volume of more than four times the average daily volume in SDC stock suggests there are a lot of investors jumping on the momentum train today. Social media mentions for SDC stock are popping, as investors look for the next potential short squeeze target.
Indeed, SmileDirectClub’s 19% short volume ratio is high. This ratio is certainly high enough to incite heavy retail buying today. Various posts suggest a number of investors are betting on “blast off” with this stock. Whether a squeeze can indeed be orchestrated with this stock remains to be seen. However, any stock with a short volume ratio around 20% seems to be a target in recent days. Accordingly, investors can expect a lot of volatility on the horizon with SDC stock from here.
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.