Redbox (RDBX) stock has been gaining a lot of attention on Reddit recently.
The stock’s short interest data has exploded in only a months’ time.
This article is for educational purposes only and is not considered to be financial advice.
I’m going to break down what’s going on with RDBX stock down below.
Let’s get started.
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RDBX short interest data
Redbox stock is heavily shorted.
Like, very heavily shorted.
RDBX stock jumped from a 30% short interest to its current 162.44% in just a little over a month.
The cost to borrow is at 571.05 and utilization is at 100 meaning every share available is out on loan.
Redbox has a small float of 8.83 million, and with an extremely high SI of 162.44% short sellers are overleveraged.
The short interest data is what allowed retail investors to predict GameStop and AMC would have massive runups.
Last year GameStop saw gains upwards of 1,500% while AMC saw gains over 3,000%.
Is RDBX stock a short squeeze play?
Very much, but it’s going to need momentum to squeeze shorts from their positions.
Will RDBX stock squeeze?
RDBX stock will need heavy buying pressure to squeeze short sellers from their positions.
We saw that heavy buying pressure played a very big role in squeezing some shorts from both AMC and GameStop last year.
Redbox stock already has the overleveraged position perfect for a short squeeze, now the short squeeze play needs momentum from retail.
Enough buying pressure (high volume) would drive RDBX stock’s price up which could cause short sellers to panic and close their short positions.
It’s this same strategy that drove AMC and GameStop to all-time highs last year.
And although AMC and GameStop aren’t done running, RDBX stock has enough short interest to initiate the first wave.
How soon will RDBX stock squeeze?
It’s highly likely RDBX stock will squeeze as more retail investors discover its short interest data.
But investors beware.
Last year SPRT stock had an insane short interest as well but merged with Greenidge eliminating the short interest data and leaving investors holding the bag.
Keep a lookout for Redbox news and updates.
If you would like me to touch more on RDBX stock leave a comment below so I know there’s interest in this stock.
I presented AMC’s short interest data for many months prior to its runup to $72 per share, it’s possible we have something going on here.
How high will Redbox stock go?
It’s difficult to identify how high a Redbox short squeeze will go.
But like any short squeeze, we can expect the price to shoot up thousands in gains.
AMC saw gains over 3,000% last year and GME stock saw gains up to 1,500%.
Plugging in these percentages with Redbox’s current share price would put RDBX stock anywhere between $95.85 to $191.70 per share.
A RDBX short squeeze could be less or higher, but one thing is certain.
Redbox is a short squeeze play due to how high the short interest data is.
I’m curious to know your thoughts on this.
Are you holding RDBX stock?
Leave a comment below.