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PROG Stock: What Is Going on With Red-Hot Progenity Today?

Today, one of the hot stocks that’s on the radar of retail investors is Progenity (NASDAQ:PROG). Indeed, PROG stock is moving higher in incredible fashion. Currently, shares of this biotech company are up more than 25%.

doctor holding tablet with graphic of dna
Source: Shutterstock

Now, such a move isn’t atypical in the biotech space. These companies provide investors with speculative high-upside growth potential. Of course, this growth potential comes at a risk. The degree to which investors believe the risk is worth the reward with such stocks largely determines what the stock price of these plays is.

For Progenity, a company providing noninvasive prenatal screening tests, this volatility has become normalized. The company’s 52-week range is an incredible 66 cents to $9.56. Currently, shares of PROG stock trade around $1.35 per share but are clearly on the lower end of the spectrum.

Like many other meme stocks, Progenity saw its stock price spike in line with other speculative plays earlier this year. Let’s dive into why this stock has resumed its positive momentum today.

PROG Stock the Next Short Squeeze Favorite?

Retail investors long to find the next GameStop (NYSE:GME) or AMC Entertainment (NYSE:AMC). Getting in early, and seeing those parabolic returns, can be the lottery ticket many investors are looking for.

It’s a gold rush like any other. And retail investors that have gotten it right have done incredibly well this year.

Currently, it appears PROG stock is being included among such short squeeze candidates. Investors will note that short interest with PROG stock has spiked in recent weeks. This remarkable spike in short interest has led to a significant portion of the decline in PROG stock. Accordingly, retail investors looking to “stick it to the man” appear to have a new candidate in this regard.

Progenity’s relatively small market capitalization of $160 million, low price per share, and the ability to buy options on this stock are all factors playing into this rise. Various social media commentators have pointed out that options volume for PROG stock has skyrocketed. Accordingly, investors appear to be betting a gamma squeeze could be in order, if enough buying interest boosts this stock.

While Progenity appears to be an extremely risky bet to take, there are enough investors taking this bet today to suggest this is a stock that could see some impressive near-term momentum. That said, like any potential short squeeze candidate, speculators and traders ought to be careful. When these things turn around, they turn around as hard as they fly.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2021/09/prog-stock-what-is-going-on-with-red-hot-progenity-today/.

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