Houston American Energy (HUSA) Stock Soars Over 27%: What's Going On?

Houston American Energy Corporation HUSA shares are soaring over 27% in Thursday trading, becoming a top trending stock on social media platforms.

The significant upward movement is possible linked to escalating geopolitical tensions in the Middle East, which are driving a rally in crude oil prices and fueling speculative interest in energy-related equities.

What To Know: The move in the energy sector follows reports that the U.S. is withdrawing nonessential staff from several embassies in the Middle East. This development, combined with heightened nuclear tensions between Washington and Tehran, has stoked market fears of a potential conflict, pushing oil prices sharply higher.

As an oil and gas exploration and production company, Houston American Energy benefits directly from the spike in energy commodity prices. By mid-morning, the stock’s trading volume had already soared past 650,000 shares, dwarfing its 100-day average of roughly 47,000 shares and signaling intense investor momentum.

Price Action: According to data from Benzinga Pro, HUSA gapped up at the market open and traded as high as $6.90 during the session. The aggressive price action is also potentially amplified by a high level of short interest.

Benzinga Pro data also indicates that 28.23% of the company’s float is sold short. This can create a “short squeeze” as short sellers are forced to buy shares to cover their positions, further accelerating the stock’s ascent.

Read Also: GameStop Stock Is Facing Selling Pressure Thursday: What’s Going On?

How To Buy HUSA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Houston American Energy’s case, it is in the Energy sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, HUSA has a 52-week high of $32.00 and a 52-week low of $3.85.

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