According to financial analyst firm S3 Partners, traders betting against Clover have increased their short-term bets against the healthcare technology company by $ 54 million in the past week, to $ 54 million. dollars. The stock accounted for 187%.
“Short sellers are looking to reverse this rising level as they enter a rising market and overheated stocks,” said Ihor Dusaniwsky, head of S3 forecast analysis. “But the contraction in the growing market is hurting the market, and today [Tuesday’s] rising prices have led to big red numbers for short sellers. “
An 86% increase in Clover shares on Tuesday saddled short sellers with a loss of $ 502 million. This year, they lost $ 554 million.
|CLOV||CLOVER HEALITY INVESTITIONS CORP||18.76||-3.39||-15.30%|
Short-term interest on the securities is $ 585 million, or 49.1 million shares, and 44 percent of the shares, or shares to be traded.
Clover Health has recently become a favorite of the RedStit group WallStreetBets, which earlier this year was behind big moves in shares of other mem stocks such as GameStop Corp and AMC Entertailovebylifent Holdings Inc.
In recent months, the group has identified short-term interest-bearing stocks, bought shares to raise prices, forcing short-term sellers to exit their positions.
This practice has attracted the attention of the U.S. Securities and Exchange Commission.
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“SEC officials will continue to monitor the market to determine if there have been market distortions, manipulation trades or other irregularities, given the constant volatility in some stocks,” the SEC said in a statement on Monday. “If violations of federal securities laws are detected, we will work to protect retail investors.”