Sirius XM Stock Trading Halted Due To Giant Short Squeeze

(CTN News) – In what appears to be a short squeeze, Sirius XM (SIRI) stock is rocketing higher this afternoon.

• Currently, the company’s low price per share and high short interest appear to be driving incredible momentum.

The stock’s price has risen steadily as a result of a series of trading halts, indicating that some large positions may be liquidated.

In many tech-oriented growth stocks, the price action today has been abysmal. Today, the Nasdaq is down approximately 2%, as investors seem to be focusing more attention on defensive plays, with Dow components outperforming and trading in the green.

Sirius XM (NASDAQ:SIRI) is one of the Nasdaq stocks experiencing a surge in today’s session. At the time of this writing, SIRI stock has soared more than 30%.

It appears that there has been a violent short squeeze higher today, resulting in this move.

The heavily shorted stock, which has over 33% of its float sold short (according to Fintel data), experienced multiple trading halts today.

As a result of these trading halts, SIRI’s stock price rocketed from less than $6 to as high as $7.75 in less than an hour.

There have been several opportunities for investors to catch their breath since this initial surge. However, the question remains: Will investors take advantage of this short squeeze?

SIRI Stock Sirius XM Jumps on Apparent Short Squeeze

Whenever a stock jumps over 30% in a matter of minutes, something technical is happening. Generally, trading halts are implemented in order to protect investors from intense volatility.

The multiple halts of SIRI stock this afternoon illustrate just how volatile the stock has been.

Sirius XM’s relatively low price per share, its high short interest, and budding chatter on social media may be causing some short positions to be broken.

Sirius XM is less heavily shorted than other stocks, but this kind of move is typically seen during short squeezes. There are many investors on one side of the boat right now, and that tilt has sent shares sky-high.

It remains to be seen whether momentum-driven moves can be sustained. In fact, retail investors may be tempted to take profits at some point.

The fact that SIRI stock remains one of the most shorted stocks in the market provides the fundamental fuel for the rally. Right now, SIRI should be on short-term traders’ watch lists. We’ll have to keep an eye on it over the next few days.

On the date of publication, Sirius XM Chris MacDonald held no positions (directly or indirectly) in the securities mentioned. According to Investor Place.com’s Publishing Guidelines, the author’s opinions are their own.

In the past 15 years, Chris MacDonald has held a number of management positions in corporate finance and venture capital fueled by his passion for investing.

The Sirius XM combination of his experience as a financial analyst and his drive to find undervalued growth opportunities makes him a conservative, long-term investor.

SEE ALSO:

A Higher Inflation Rate In Japan Is Keeping The Dollar Firm And The Yen Steady