SmileDirectClub (NASDAQ:SDC) stock is on the move today as retail traders target the shares for a short-squeeze play.
SmileDirectClub stock got a boost at the start of the week when its high short interest of 40% was pointed out online. Since then, it has maintained an increased price as investors continued to eye the company.
Now, it looks like that patience is paying off for some traders. The stock is taking off today with shares pushing higher despite a lack of news. Of course, this comes with heavy trading as some 66 million shares change hands. For comparison, the stock’s daily average trading volume is about 8.7 million shares.
Investors that are considering jumping into the SDC stock rally today will want to be careful. While gains are happening now, we don’t know how long that will last. It could go on through today with higher prices. However, we could also see it crash later in the day.
To be fair, that’s the fate of many penny stocks that get pumped up by retail traders. They choose stocks with low float and cheap prices to pump up higher before leaving with their profits. This can leave normal traders holding the bag if they aren’t careful.
SmileDirectClub is a dental service with a big focus on straightening teeth. It seeks to squeeze into the market with cheap prices and consumer-friendly services.
SDC stock was up 11.3% as of Friday morning but is down 42.9% since the start of the year.
Investors looking for more stock market news will want to keep scrolling!
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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.
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