SCWorx (NASDAQ:WORX) stock is on the rise Friday as one expert believes it’s set for a short squeeze soon.
Samuel Peterson, a former hedge fund analyst, took to Twitter (NYSE:TWTR) to share his thoughts on SCWorx stock. He told his nearly 1,600 followers to keep an eye on the stock as it has the potential for a short squeeze.
A few factors are behind Peterson’s opinions on WORX stock. First off is the fact that the penny stock has a float of only 7.4 million shares. Adding to that, he points out that 58% of these shares are shorted.
Of course, that’s not the only reason that Peterson is pointing to WORX stock as a short squeeze play. He also notes the rising lockdown talk surrounding the delta variant of the novel coronavirus in his Tweet.
This matters to SCWorx as it provides masks to hospitals. These are used by employees that are treating patients with COIVD-19. The company also handles data and software services for healthcare providers.
You can check out Peterson’s Tweet below.
$WORX The next short squeeze play. Keep an eye on it. pic.twitter.com/kAOB6brg6s
— Samuel Peterson (@realsampeterson) July 30, 2021
Investors are reacting to the news about WORX stock today as it sees heavy trading. As of this writing, more than 27 million shares of the stock have changed hands. That’s a massive jump compared to its daily average trading volume of about 3.9 million shares.
WORX stock was up 8% as of Friday afternoon.
We’ve got more stock market news worth checking out below!
InvestorPlace offers up daily coverage of the stock market and we’ve got a few interesting stories to keep up with today. That includes what’s happening with Chinese EV stocks, a midday market update, and more. You can get all of these details at the following links!
More Friday Stock Market News
- Chinese EV Stocks: The Big News That Has LI, XPEV and NIO Stocks Rebounding Today
- Midday Market Update: Why Are Stocks Down Today?
- CLOV Stock: What Reddit Investors Are Saying About Clover Health Today as WSB Chatter Increases
On the date of publication, William White 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.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed
