Today, investors in Exela Technologies (NASDAQ:XELA) and XELA stock are seeing some pretty impressive gains. Indeed, shares of XELA stock are up more than 40% at the time of writing on heavy volume.
Today’s 40%-plus move higher has pushed XELA above $2. Importantly, this follows a period of consolidation which wiped away more than three-quarters of the company’s market capitalization. Remember, the stock hit a peak of $7.82 per share seen in March.
But why all the commotion today?
Well, for starters, Exela has been targeted by the retail investing mob as a potential short squeeze candidate. Indeed, the company’s short volume ratio of 25% and its relatively low per-share price is enticing to speculators and gamblers in this casino of a stock market. With increasing emphasis on such small-cap gambles, these volatile moves are becoming more commonplace.
That said, Exela has some intriguing news that’s corroborating today’s move. Let’s dive into what’s going on with XELA stock right now.
XELA Stock Advancing Higher Post-Announcement
Today, Exela announced the company’s rollout of EON, its robotic process automation (RPA) platform for a large health insurance company. Which company Exela has targeted remains to be seen. However, the news that a major health insurer has taken on Exela as a supplier adds to the intrigue with this growth stock.
This RPA platform is currently utilized across several industries, spanning banking, finance, accounting and the public sector. However, today’s move into the healthcare space is one investors are cheering.
As companies look to digitize and automate their operations, Exela stands to benefit. Its RPA platform allows for clients to automate repetitive tasks. Fulfillment services, and other manual processes become simpler and more cost-effective. Indeed, more value added to Exela customers means more margin expansion potential for XELA shareholders over the long term.
Accordingly, as automation and productivity improvements become the focus of many companies on the cost side of the equation, investors in XELA stock are betting that robotics will play a big role in this highly productive future.
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.