Today is a very surprising one for those holding NeuroMetrix (NASDAQ:NURO) stock. Yesterday saw huge news coming from the biotech outfit, which catalyzed huge gains. And today, those gains are recurring. Things are quiet out of the NeuroMetrix camp today, and yet, the stock is seeing gains equal to those resulting from yesterday’s announcement. What’s the deal here? Well, it seems like retail traders are taking NURO stock and running with it.
As InvestorPlace‘s William White reported yesterday, NeuroMetrix dropped some very big news on investors. The company achieved “Breakthrough Device Designation” from the Food and Drug Administration (FDA) for its Quell device. Quell is a neurostimulation device that helps fibromyalgia patients manage their symptoms conveniently. As a result, NURO stock saw gains of over 140% from the news, with investors flocking to buy the stock.
NURO Stock Continues Upward Tear, Thanks to Retail Short Squeezers
It’s just hours after the opening bell, and NURO stock has already doubled in value. Why is the stock doing better today than yesterday, where there is no real, tangible news to report? Well, the answer lies in the short volume.
In a now deleted post, one r/WallStreetBets user encapsulated today’s events perfectly with their advice to traders:
“Get in on $NURO!!! You all talk about short squeezes and making hedgies pay, well more short positions were opened up because of the stock’s 200% run yesterday. If you want to burn shorts here’s your chance.”
Short interest is increasing on NURO stock after yesterday’s gains; institutional investors seem to think the company’s value is overstated. As such, NURO is seeing a short volume ratio of nearly 18%. And of course, we all know what happens when r/WallStreetBets sees a stock with a high short volume: They buy.
And they are certainly buying today. Well over 40 million shares of NURO are trading hands today, against the daily average volume of just 4.5 million. NURO stock is up a whopping 143% on this buying spree.
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.