Little-known insurance company Reliance Global (NASDAQ:RELI) is having a wild start to the day. Its RELI stock is up more than 100% in the first hour of trading.
But the exact reason for the huge move higher isn’t known. The company has not made any formal announcements that would cause its share price to rise dramatically. The absence of any company news has led to speculation on social media that a short squeeze is being executed on RELI stock.
Whether today’s gains are the result of Reliance Global Group being treated as a meme stock remains to be seen, but they warrant a closer look at the company whose share price finished yesterday’s trading session at $3.05.
7 Things to Known About Reliance Global and RELI Stock
- Reliance Global Group’s stock is one of the 10 most shorted on Wall Street right now with a current short interest of 34%. Given this situation, a short squeeze on the stock would help to explain its 100% gain today.
- Reliance Global Group owns a portfolio of insurance brokerages and financial service companies, including Minute Insurance, J.P. Kush and Associates and U.S. Benefits Alliance.
- Prior to today’s big jump, RELI stock had been down 49% year to date, including a 20% decline over the past six months.
- This would not be the first time that Reliance Global Group’s stock has been squeezed. Earlier this year, RELI stock leapt 664%, vaulting from $5.61 per share up to $42.86 between Feb. 5-8.
- The short squeeze earlier this year came just before Reliance Global Group listed its shares on the Nasdaq exchange on Feb. 9.
- Reliance Global runs a cloud-based insurance platform called 5MinuteInsure.com that enables people to quickly get online insurance quotes. Earlier this year, the company expanded the platform to Illinois, Connecticut, Nebraska, New Mexico, Nevada, South Dakota, Vermont and Wisconsin.
- Reliance Global Group is a popular topic on social media sites with retail traders, including some who refer to it as “The Most RELI-ABLE Squeeze!”
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On the date of publication, Joel Baglole 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.