5 Investors Betting Big on Grom Social (GROM) Stock

  • Grom Social (GROM) had short interest of 59.21% as of Dec. 30.
  • Bigger Capital Fund is the largest institutional shareholder of the company with 529,023 shares.
  • GROM stock is up more than 20% today.
GROM stock: a phone displaying the GROM social network app page in the app store
Source: Postmodern Studio / Shutterstock

Grom Social (NASDAQ:GROM) stock is surging higher today on no company-specific news. As a result, shareholders are speculating that a short squeeze may be the culprit behind the upside.

MarketBeat lists GROM as one of the stocks with the highest short interest on its short interest list. As of Dec. 30, GROM had a short interest as a percentage of float 59.21%, which is equivalent to 408,474 shares. The high short interest seems to line up with today’s price action. As price increases, short sellers may exit their positions by buying shares of the underlying stock. A surging price may cause other short sellers to exit as well.

Meanwhile, Grom disclosed last week that its subsidiary, Curiosity Ink Media, had acquired an equity stake in musical series and kids brand Hey Fuzzy Yellow! Along with the stake, Grom will partner with production and distribution company Toon2Tango to co-produce the series.

After receiving financing and programming commitments from several broadcasters, Hey Fuzzy Yellow! is expected to enter into production in 2023. Curiosity Ink Chief Content Officer Russell Hicks added the following about the news:

“Each episode will be developed and crafted to bring fun, excitement and catchy songs that grownups will love just as much as their preschoolers. Hey Fuzzy Yellow! is a series for younger kids that invites parents and caregivers in for a one-of-a-kind co-viewing opportunity rarely seen in programming today.”

5 Investors Betting Big on GROM Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 25 13F filers disclosed a stake in GROM stock, an increase of three filers from the prior quarter. Furthermore, Yahoo! Finance notes that insiders own 10.40% of all shares outstanding, while institutions owns 20.83% of all shares outstanding and 23.25% of the public float. With that in mind, let’s take a look at the top shareholders of GROM:

  1. Bigger Capital Fund: 529,023 shares. Bigger Capital purchased 328,007 shares during Q4.
  2. Geode Capital Management: 417,259 shares. Geode purchased 14,256 shares during Q3.
  3. Lind Global Fund: 249,173 shares. Lind disclosed its entire stake in a filing dated Dec. 9.
  4. CVI Investments: 174,000 shares. CVI disclosed its entire stake in a filing dated Dec. 9.
  5. HRT Financial: 32,828 shares. HRT purchased its entire stake during Q3.

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On the date of publication, Eddie Pan did not hold (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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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