Not satisfied with yesterday’s near-60% gain, investors in Exela Technologies (NASDAQ:XELA) are pushing XELA stock up to similar levels before Wednesday’s market open.
More than 200 times the average daily volume of XELA shares traded on Tuesday as the stock price pushed past the $2 threshold. This move saw Exela roar back from previous losses that had erased more than two-thirds of the company’s market capitalization.
While yesterday’s action was attributed by some market watchers to retail traders eyeing what they saw as a short-squeeze target, today there is material news from Exela.
The Dallas, Texas-based business process automation firm today announced that its digital mailroom platform was live and available for online signups for small and medium-sized businesses (SMBs) in the United Kingdom. With more people opting to work from home, the platform will enable users to get a virtual office address and receive incoming mail as digitized documents.
That news followed a Tuesday announcement of a rollout of a process automation solution with an unidentified “large health insurance” company.
XELA Stock Seen as ‘Moon-Bound’
Absent any scope or size of the potential contribution of those news items on Exela’s revenue stream, let’s have a look at the greater likelihood that it is the retail investing mob that’s moving shares today.
The XELA stock chatter on several subreddits, including r/WallStreetBets and r/PennyStocks, spiked on Tuesday and remains elevated. The shares’ short volume ratio increased two percentage points from yesterday to 27%, stoking further interest from investors.
Investors in Exela have had a wild ride so far in 2021. XELA stock is up 87.1% for the year as the market approaches the half-way point ahead of the Fourth of July holiday weekend. Despite stats that include serving over 4,000 companies, operating in 50 countries and having more than 23,000 employees, there’s only one analyst following the stock, according to CNN Business, so there’s little objective research to guide you on this one.
On the date of publication, Robert Lakin 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.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.