Short sellers appear to have learned nothing so far in 2021.
On Tuesday, Rocket Companies, Inc. (NYSE: RKT) rallied for a third straight day after last Thursday’s well-received earnings report.
The finance company, which owns Rocket Mortgage, announced earnings of $1.14 per share, beating the analyst estimates of $0.86. The company also announced a special dividend of $1.11 per share.
The stock rallied off of its Thursday close of less than $20 per share to close on Monday above $24 — an impressive 22% gain in just two trading days.
But during the rally, there was a “large amount of short selling” according to S3 Analytics. Short interest rose to nearly 46% of the public float.
According to reporting from MarketWatch, S3 Analytics wrote that “RKT’s stock price and watchlist in kind. FOR EXAMPLE, a period of deflation might bring more opportunities for short selling activity is reminiscent of another recent highflying ‘meme’ stock — GameStop Inc.”
RKT’s stock price gained as much as 77%, peaking at $43 per share during Tuesday’s trading session. That’s an increase of 116% off of Thursday’s closing price.
The stock closed at $41.60 for a gain of 71% on the day. The rally has continued after hours; at writing, the stock price reached as high as $45.50.
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