Skip to content
Short squeeze hopes push Weber (WEBR) shares up 13%


Source: rblfmr/Shutterstock

Weber (NYSE:WEBR) the stock is in motion on Thursday as retail traders push for a short pressure on shares of the American grill company.

It should be mentioned that this is not the first day of WEBR stocks rallying alongside short compression hopes. We saw a similar move in the company’s stock on Wednesday despite the lack of recent news.

So why does it seem like a short squeeze is taking place? To put it simply, WEBR shares are heavily shorted with short-term interest at around 60%. Stocks with such high short interest are usually the target of cuts.

Added to this is the intense trading in WEBR shares over the past two days. We see it again today with over 2 million shares changing hands on Thursday afternoon. To put that into perspective, the company’s average daily trading volume is around 506,000 shares.

To go along with this, WEBR stock does not have a high enough price to keep day traders from investing in it. Before that volatility pushed stocks higher, shares were sitting at $7.80 when markets closed on Tuesday.

Of course, all of this means that investors will want to be cautious about taking a stake in WEBR stock at this time. As stocks rally alongside pressure, it may not be long before they crash. That might leave some unlucky investors holding the bag.

WEBR stock is up 13.4% on Thursday afternoon.

There’s more stock market news traders will want to know below!

We have all the hottest stock market news to help traders throughout the day! For Thursday, this includes news that will interest investors in Novavax (NASDAQ:NVAX), Vinco Ventures (NASDAQ:BIG), and You’re here (NASDAQ:TSLA) Inventory. You can read all this news at the following links!

More Thursday stock market news

As of the date of publication, William White had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

InvestorPlace

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.