XpresSpa Group (XSPA) Stock: Here’s Why It’s Flying

XpresSpa Group XSPA Stock NewsXpresSpa Group Inc (NASDAQ: XSPA) is having an incredibly strong day in the market today. However, if you’re looking for SEC filings or press releases that may be the cause for the gains, you may be disappointed. There’s none of that out there. Nonetheless, there is a very good reason for the gains. Today, we’ll talk about:

  • Why XSPA is climbing;
  • what we’re seeing from the stock; and
  • what we’ll be watching for ahead.

Why XSPA Is Climbing 

As mentioned above, XpresSpa is having an overwhelmingly strong day in the market today, but the company hasn’t released any news either by SEC filing or via press release. So, what’s the deal? Well, it looks like a short squeeze.

XSPA is a stock that has traded relatively flat as of late with an incredibly low float. Moreover, the short interest on the stock has been incredibly high. In fact, as of October 17, about 53% of shares of the stock were sold short. That’s a high number even when we’re talking directly about high short interest.

Nonetheless, while no news has been released, when there’s a stock with a low float and heavy short interest, the slightest move upward could trigger a short squeeze. In the case of XSPA, we believe that a short squeeze is exactly what’s happening, and it may just be the beginning.

You see, with 53% of shares sold short, the gains today could just be the tip of the iceberg. As share values continue to fly higher, more shorts will be forced out of their positions, likely leading to more gains. So, hang onto your hats, this stock may go far higher.

What We’re Seeing From The Stock¬†

Short squeezes are some of the most powerful drivers of upward movement in the stock market. With recent short interest on XpresSpa being so high, the short squeeze could continue to drive the stock far higher. Nonetheless, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:09), XSPA is trading at $0.21 per share after a gain of $0.60 per share or 39.08% so far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on XSPA. In particular, we’re interested in seeing just how high this short squeeze pushes the value of the stock. Nonetheless, we’ll keep our eyes on the news and bring it to you as it breaks!

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