Insider Buying

Weber Inc faces Short Squeeze of almost 16% in a single day

Within the past five days, Weber Inc (WEBR: US) stock soared by nearly 27.30%. The stock closed at $8.63 on June 22, before closing at an astounding $10.04 the following day. This marked a rise of almost 16.34% in a single day.

Even the trading volume for these shares rose on both days. On June 21, 558,700 shares of WEBR were traded. This number increased to 1,975,000 shares on June 22, and later to 11,503,500 shares on June 23. 

According to analytics, this has been the biggest two-day price surge for the stock since its IPO in Aug’21. Of course, this surprising rise has put short sellers in a bind.

Ongoing Short Selling

Currently at 100%, the stock’s utilization rate has been high since the company’s IPO. The lowest rate it reached was 58.58%, on September 27, 2021. 

The number of shares on loan is 5,686,788, as of June 23, 2022. With the current M Cap at almost $435.4 million, this brings WEBR’s short interest rate to 10.76% as of June 23.

Weber is grilling Short Sellers

Founded in 1952, Weber has been a manufacturer and distributor of outdoor grills among other products and accessories. On August 5, 2021, Weber Inc commenced as a public company, offering 17,857,143 shares. The price of its IPO was $14.00 per share.

Recently, on May 16, 2022, the manufacturer disclosed its fiscal Q2 2022 earnings. The period, which ended on March 31, 2022, showed net sales that had decreased by almost 7%. In the Americas, net sales had decreased by 18% when compared to the previous year’s quarter. 

As of yet, WEBR is still a favorite among short-sellers, but at the same time has earned its place in the list of meme stocks. While meme stocks have been deemed as favorable for the short-run price increases, Weber can still hit higher numbers than its current stock price thanks to buy ratings from analysts and the company introducing new products into the market.

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