Just minutes into the day’s session, and Senseonics Holdings (NYSEMKT:SENS) already eclipsed its daily average trading volume. But with no real news to report on the company’s goings on, what could be driving SENS stock higher so quickly today? Say it with me now: r/WallStreetBets.
Senseonics is a small, Maryland-based pharma company, which specializes in the development of products made to ease the burden of diabetes monitoring.
Notably, the company is behind the only FDA approved long-term continuous glucose monitor, Eversense.
Recently, the company saw shares rocketing on news of a promising trial. A 180-day study of the company’s primary and secondary glucose monitors shows promise in the efficacy of implanted monitoring products. As a result, the stock shot up over 30%. However, this study’s results are old news. What’s behind the big movement today with no announcements since then?
SENS Stock Boosted Off of r/WallStreetBets Chatter
The company’s stock might fly under the radar of many investors. However, with 25% of its float being short, retail investors are smelling it out like a bloodhound.
The Reddit message board is showing interest in getting SENS stock today. Mentions of SENS on the subreddit are increasing over 1,500% in the last 24 hours. Users are commenting on the high short interest, and loading up shares in anticipation of a squeeze.
r/WSB continues to astonish with its highly efficient mobilization of users. Investors are proving week in and week out their ability to rotate to different stocks, squeezing Wendy’s (NASDAQ:WEN) on Wednesday and then moving to Geo Group (NYSE:GEO) on Thursday before landing on SENS today, with countless other pumps occurring at the same time. They are working so fast, squeezes from days ago feel like old news as compared to the GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) sagas.
Mentions on r/WSB may just be starting to perk up, but 40 million SENS shares have changed hands against the 25 million daily average. SENS stock is up by over 8.7%, with shares trading at $3.93 so far.
But is this a good play? As InvestorPlace analyst Luke Lango says:
“It’s got all the makings of a successful meme stock breakout. Single-digit stock. Small float of just 280 million shares. High short interest with 25% of that float sold short. Tons of retail chatter. That’s the same recipe which caused GameStop, AMC, Clover and others to break out. Looks like we are getting the same thing here with SENS. But, be warned, it looks like hype meme play alone — meaning it will pop, and then drop. If you get in for the ride, be prepared to get out in the near future.”
On the date of publication, Brenden Rearick 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.
