SDC - Why Shares of SmileDirectClub Soared This Week
2023-08-04 12:32:25 ET
Shares of SmileDirectClub (NASDAQ: SDC) were up by more than 32% for the week as of Friday at 12:30 p.m. EDT, according to data provided by S&P Global Market Intelligence . The oral care company with a medtech platform for teeth-straightening closed last week at $0.70 a share, then climbed as high as $1.09 on Tuesday. The healthcare stock is up more than 162% so far this year.
The company's shares gained traction from two sources. The first was an earnings surprise by competitor Align Technology this week, where the maker of Invisalign braces said quarterly revenue was $1 billion, up 3.4%, year over year, and earnings per share (EPS) was $2.22, up from $2.15 in the same period last year. With Align buoyed by market forces that saw more young people getting braces, the thought was that SmileDirectClub would likely have improved numbers when it reports its second-quarter earnings on Aug. 8.
The other factor was that some retail investors may be attempting a short squeeze, as SmileDirectClub's shares have a 21.3% short interest.
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Why Shares of SmileDirectClub Soared This Week