This year has certainly been an interesting one for various stocks seen as short-squeeze plays. Among the small cap tickers that have grabbed investors’ attention of late is Reliance Global (NASDAQ:RELI). Today, RELI stock surged 30% this morning, before selling off this afternoon. As of 1 p.m. Eastern, this stock was still up approximately 10% over yesterday’s close.
Reliance Global is an interesting micro cap company that doesn’t typically get a lot of attention. With a market capitalization around $65 million after today’s rise, RELI stock is among the niche names that few investors actively watch. However, based on certain metrics, Reliance Global is a company that’s started to look attractive to short-squeeze enthusiasts at this level.
Of course, given Reliance Global’s relatively small size, this is a higher-risk pick. However, there are reasons as to why this stock is garnering attention today.
Let’s dive into what retail investors appear to be watching with RELI stock today.
What’s Behind Today’s Impressive Rally in RELI Stock
- Reliance Global is a conglomerate of U.S.-based insurance agencies.
- This company focuses on healthcare, personal and commercial, transportation, and employee benefits insurance products.
- A relatively new addition to the stock market, RELI stock hit the Nasdaq earlier this year.
- This insurance player has grabbed the attention of short-squeeze enthusiasts.
- That’s because Reliance Global’s short interest ratio currently sits around 44%.
- Retail investors have targeted this small cap stock for its relatively small float.
- Today, investors appear to be betting on the potential for a squeeze with this stock, with heavy volume seen in RELI stock in early trading.
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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