Ocean Power Technologies Inc (OPTT) Heads Toward Best Day Ever

Shares of Ocean Power Technologies Inc (NASDAQ:OPTT) have nearly quadrupled in value, after the company inked a roughly $1 billion lease agreement

by Karee Venema

Published on Jun 1, 2016 at 2:25 PM
Updated on Jun 1, 2016 at 3:53 PM

Shares of Ocean Power Technologies Inc (NASDAQ:OPTT) have nearly quadrupled in value today -- last seen up 277% at $5.77 -- and, while OPTT doesn't trade options, with almost 17 million shares traded, stock volume is at an all-time high. Sparking today's activity is news that OPTT will lease its nearly $1 million PB3 PowerBuoy systems, which generates electricity from ocean waves, to Mitsui Engineering & Shipbuilding Co Ltd. As such, OPTT is on pace for its biggest percentage gain to date, catching short sellers off guard.

Specifically, short interest rose 8.8% in the most recent reporting period to 60,000 shorted shares. It would take more than four sessions to cover these shorted shares, at OPTT's average daily pace of trading.

Ahead of today's trading, though, these short sellers were in the drivers seat. For starters, the stock was trading all the way up near $275 at its peak in April 2007. More recently, Ocean Power Technologies Inc (NASDAQ:OPTT) was sitting on a 74% year-over-year deficit through last night's close -- and notched a record low of $0.95 on Jan. 20. Thanks to today's bull gap, though, OPTT has taken a comfortable lead over its 50-week moving average, a trendline not conquered on a weekly closing basis since June 2014.

OPTT weekly chart

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.