Shares of MicroCloud Hologram (NASDAQ:HOLO) plunged by nearly 20% yesterday after the holographic software solutions provider announced a convertible debt sale.
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MicroCloud is issuing convertible notes for up to $28 million. The company hopes to shore up its financial position with this move. However, the action in HOLO’s shares may be stemming from another factor.
Here’s Why HOLO Shares Have Been in Focus Lately
HOLO shares have been on a rollercoaster ride over the past few months, primarily due to the very high short interest in the stock. At one point, HOLO was the second-highest shorted name on the Street with a short interest of around 75%. This caught the attention of meme mania enthusiasts, who pushed HOLO’s share price as high as $66 earlier this year.
Since then, though, short interest in HOLO has cooled down to around 11%, and so has its share price. The stock is currently changing hands at around $0.64 per share and has a market capitalization of roughly $66 million. Still, investor interest in the stock is evident from its trading volume, which stands at roughly 47.7 million at present. In comparison, the average trading volume in the stock over the past three months stood at just 16.8 million shares.
Will HOLO Stock Go Up or Down?
While HOLO’s low share price may seem like an attractive entry point for retail investors, the TipRanks Technical Analysis tool is flashing a Strong Sell signal on the stock on a monthly timeframe. This means avoiding taking any position in HOLO could be the right approach for now.
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