Adeptus Health Inc ADPT shares were higher by more than 5.5 percent in early Monday trading and are now up 18.6 percent in the past week.
A number of health stocks have been on the move since the surprising election of Donald Trump last week. However, without any major company-specific news, much of the Adeptus rally could be attributed to a major short squeeze.
If the red-hot stock is being mostly driven by short covering, the stock could still have significant upside remaining. According to shortsqueeze.com, there are 7.2 million shares of Adeptus held short with 13 days to cover. With Adeptus’ current share structure, those numbers represent an 80.1 short percent of float.
Trump’s election has triggered huge short squeezes in a number of other stocks as well, including prison stocks Corecivic Inc CXW and the GEO Group Inc GEO.
In addition, Benzinga reported on Friday about a potential Trump-related short squeeze in Eagle Bulk Shipping Inc EGLE. The stock is up another 28 percent in Monday’s session.
Adeptus bulls are hoping the Trump-fueled short squeeze in healthcare stocks will have the same kind of endurance. Despite the recent move, the stock remains down 81.4 percent in 2016.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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