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Short Squeeze Could Extend Celsius Stock Rally

The beverage stock is on track for its best single-session gain since November 2020

Digital Content Manager
Aug 9, 2023 at 2:48 PM
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Celsius Holdings, Inc. (NASDAQ:CELH) is surging, last seen up 20.6% to trade at $172.98, and earlier hit an all-time high of $175.85, after the energy drink company announced blowout second-quarter results. In addition to better-than-expected earnings, quarterly revenue more than doubled year-over-year to $325.9 million. In response, five brokerages hiked their price targets, including UBS to $209 from $160.
 

Options traders are chiming in as well, with 26,000 calls and 11,000 puts exchanged so far, which is seven times the volume that is typically seen at this point. Most popular are the weekly 8/11 160- and 155-strike calls, with new positions being bought to open at both. 

Today, the shares finally pierced through $155 after falling short in mid-July, and are looking to close back above their 20-day moving average. Now on track for its best single-day percentage gain since November 2020, CELH is up 119.9% in the last nine months.

CELH 20 Day

A short squeeze could keep tailwinds blowing for Celsius Holdings stock. While short interest has already started to unravel -- down 11.1% in the last two reporting periods -- the 10.50 million shares sold short still make up 23.3% of the equity's available float, or more than one week's worth of pent-up buying power.

 
 

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