By
Bhushan Akolkar
May 14th, 2020
Should SDC stock follow similar steps as other prior meme stocks like GameStop, then more upward gains are expected in the coming weeks.
SmileDirectClub Inc (NASDAQ: SDC) closed Thursday trading at $6.0, up 5.63%. The gains continued to come in during the extended trading session, as SDC stock traded around $6.38, up approximately 6.33%. And in the pre-market, the gain is 9%. The increased volatility has not been attributed to any internal news as there has been no notable news. However, the gains have been directly attributed to a coordinated short squeeze from different social media platforms including Discord, Twitter, and the likes.
According to market analytics provided by MarketWatch, the short interest as of August 31, 2021, was 34.24 million out of 118.87 million outstanding shares. The SDC stock market has enjoyed an average volume of 8.63 million shares but has recently seen its volume spike to almost 40 million.
The teledentistry company with its headquarters in Nashville, Tennessee has been in existence for the past seven years. Notably, the company focuses on 3D-printed clear aligners away from the traditional braces in the market.
The company went public on September 12, 2019, whereby the market entry price was at $23 per share. However, the market price per share dropped to as low as $3.64 during last year’s Black Thursday. Although the SDC stock market rose to nearly $16 per stock at the beginning of the year, the price has since retracted to trade as low as $4.8 in mid-August.
The increased volatility is similar to what is experienced now and then in the crypto market. Notably, it is said that stock markets with small valuations and low volume experience higher volatility than those with high market cap and higher daily volume.
SDC Stock and Market Outlook
Should SDC stock follow similar steps as other prior meme stocks like GameStop, then more upward gains are expected in the coming weeks.
Notably, SDC stock has dropped approximately 50% both in the past year and YTD according to market analytics provided by MarketWatch. However, the market has risen approximately 24%, and 16.5% in the past month and five days respectively through Thursday.
Having been previously rated 13 times, SDC shares received an average of a Hold rating. Previously, former hedge fund manager Will Meade had pointed out stocks that are likely to be facing coordinated short squeeze. Among them was SDC stock with 40% short interest.
