Weber (NYSE:WEBR) stock is on the move Thursday as retail traders push for a short squeeze of the American grill company’s shares.
It’s worth mentioning that this isn’t the first day of WEBR stock rallying alongside short squeeze hopes. We saw a similar movement in the company’s shares on Wednesday despite a lack of recent news.
So why does it look like a short squeeze is taking place? To put it simply, shares of WEBR stock are highly shorted with short interest sitting at around 60%. Stocks with such high short interest are typically targets for squeezes.
Adding to this is heavy trading of WEBR stock over the last couple of days. We’re seeing that again today with more than 2 million shares of the stock changing hands as of Thursday afternoon. To put that in perspective, the company’s daily average trading volume is about 506,000 shares.
To go along with this, WEBR stock doesn’t have a high enough price to stop day traders from investing in it. Before this volatility sent shares higher, shares were sitting at $7.80 when markets closed on Tuesday.
Of course, all of this means that investors will want to be careful about taking a stake in WEBR stock right now. While shares are rallying alongside the squeeze, it might not be long before they come crashing back down. That could leave some unlucky investors holding the bag.
WEBR stock is up 13.4% as of Thursday afternoon.
There’s more stock market news that traders will want to know about below!
We’ve got all the hottest stock news to get traders through the day! For Thursday, that includes news that will interest investors in Novavax (NASDAQ:NVAX), Vinco Ventures (NASDAQ:BBIG), and Tesla (NASDAQ:TSLA) stock. You can read all of that news at the following links!
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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.
