Shares of Kodak (KODK) are still up about 530% in the past five days — even after big slides at the end of last week and a drop of more than 20% Monday — following the news that the government will loan it $765 million to help produce drugs as part of a new pharmaceutical unit.
It appears Kodak has become a popular stock for younger day traders to buy and sell. According to data from Robintrack, a firm that follows holding patterns of traders using popular investing app Robinhood, Kodak is the most actively traded stock on the platform during the past week.
The only stocks with a bigger following in the past month on Robinhood are Elon Musk’s super-hot electric car company Tesla (TSLA), mega-cap techs Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) and biotech Moderna (MRNA), which is working on a Covid-19 vaccine.
But that sugar rush may not last long. The big slide in Kodak’s shares over the past few days could be a sign that short sellers — investors who bet the stock will go down — are borrowing more shares and selling them, pushing the price lower in the process.
Other investors may be looking to lock in huge gains from the past week and are now dumping shares, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, in a report.Cnn