Short squeeze investors are cooking up something good this morning in the form of SCWorx (NASDAQ:WORX). On no news to speak of, WORX stock is shooting up 50% at the opening bell. What’s behind this, what is this small-cap play, and why was it chosen to be the short squeeze of the day?
SCWorx is a software group that specializes in products for use in the healthcare industry. The goal of the company, per its website, is to improve accuracy in hospitals’ margins, creating software to accurately track spending and craft reports.
As such, many of its products deal with supply chain itemization. There’s no news to speak of that would elevate WORX stock from a typical market standpoint. The last piece of major news the company had to report on was months ago, in the form of a new CEO hire. At the time, SCWorx also shared that it had gained listing compliance with the Nasdaq Exchange.
WORX Stock Sees Major Lift From Short Squeeze Investors
WORX stock is not a typical stock pick, by any means. The company is very small in terms of market capitalization, clocking in at just over $39 million. However, its short volume ratio is what makes it so appealing — it stands at a whopping 36%.
This is a classic formula for a short squeeze; as such, investors jumped on the opportunity by buying WORX stock en masse. So far, 57 million shares have already traded hands today. For reference, daily trading volume on WORX is just 1.5 million.
A lot of factors around this short squeeze we can’t be sure of. This isn’t the work of r/WallStreetBets. In fact, mentions of WORX on the subreddit are essentially nonexistent. As InvestorPlace Markets Analyst Tom Yeung recently highlighted, this could mean that it is the work of Discord or another social media platform.
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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.