From the close on Dec. 19 to the close on Dec. 20, Polished.com (NYSEMKT:POL) surged higher by more than 600%. The company operates as an e-commerce seller of home goods, appliances and furniture. What is responsible for the stock’s gains? Even Polished.com doesn’t know.
The company disclosed yesterday that the New York Stock Exchange (NYSE) had contacted it concerning its unusual price action.
“However, the Company confirms that it is not aware of any undisclosed material change or development in its business and operations that would account for the recent increase in the share price and trading volume of the Company’s stock,” said Polished.com.
Could it have been a short squeeze? As of Dec. 11, there were 244,646 shares sold short, equivalent to a short interest as a percentage of float of 11.89%. Generally, a short interest above 10% is considered high, while a short interest above 20% is considered very high. Still, it’s unusual to see a stock go up by over 600% with a short interest below 20%.
In the meantime, the situation appears to be reverting back to normal. POL stock is down by about 50% today but still up nearly 200% during the past five trading days.
POL Stock: 5 Investors Betting Big on Polished.com
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 40 13F filers disclosed a stake in POL stock, a decline of eight filers from the prior quarter. In total, institutional investors own 16.29% of all shares outstanding, while insiders own 2.46%.
According to WhaleWisdom, hedge funds owned 59,931 shares as of Q3, down by nearly 80% from 290,832 shares during Q2. A total of 7 hedge funds own shares of the company, down from 13.
With that in mind, let’s take a look at Polished.com’s largest shareholders:
- Chapin Davis: 158,146 shares. Chapin sold 58,000 shares during Q3.
- Vanguard: 107,399 shares. Vanguard’s stake remained unchanged during Q3.
- Private Wealth Strategies: 37,913 shares. Private Wealth’s stake remained unchanged during Q3.
- Bard Associates: 34,149 shares. Bard sold 440 shares during Q3.
- BlackRock (NYSE:BLK): 31,149 shares. BlackRock sold 29 shares during Q3.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
