The short-squeeze trade doesn’t appear to be over. Indeed, for investors in Insignia Systems (NASDAQ:ISIG) and ISIG stock, this trade appears to have some serious legs.
Various micro cap stocks such as Insignia Systems are seeing impressive buying pressure today. Retail investors are smashing the bid on companies with higher-than-average short interest. As it happens, Insignia Systems is currently one of the most shorted stocks in the market. The company’s short interest ratio of 61% is very high, signaling this stock could be a prime candidate for a squeeze.
Insignia’s business model is also intriguing to aggressive growth investors. This company focuses on providing physical and digital advertising solutions to clientele in the U.S. As the economy continues to recover from this pandemic, there’s a fundamental growth thesis for this company as well.
That said, today, all eyes are on Insignia’s potential as a short-squeeze play. Let’s dive into some of the chatter that’s driving this company higher today.
ISIG Stock Surges Amid Another Short-Squeeze Frenzy
Any time a company sees roughly 10 times the average daily volume of shares trade before the afternoon, investors know something is up. In the case of Insignia, impressive retail-buying momentum appears to be the cause of this rally today.
A number of social media sites have lit up with mentions of ISIG stock. Among the top sites capturing eyeballs today is Reddit, and the r/Shortsqueeze channel in particular.
A number of users have posted their due diligence on the fundamentals that may support a squeeze. A low float, relatively low price per share, and high short interest ratio are among the key factors short-squeeze enthusiasts are jumping on today. Indeed, at a high level, Insignia certainly does appear to be an attractive short-squeeze candidate given these factors.
That said, this stock has been a highly volatile one this month. Shares of ISIG stock opened the month around $5 per share. This stock then soared to more than $35 per share, before deflating toward the $10 level. Today’s rise of more than 80% has brought ISIG stock back above the $20 level.
Accordingly, where this stock goes from here remains uncertain. Investors betting on a squeeze must also be aware of the downside risks with such a stock. These volatile moves may be around for some time, so sit back and grab your popcorn. This looks like a fun one to watch.
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.
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