The stock market was having a mixed day on Wednesday. The Dow Jones Industrial Average and Nasdaq Composite were both modestly lower, while the S&P 500 was slightly positive for most of the morning.
On the other hand, Clover Health Investments (CLOV 0.83%), a disruptive Medicare insurance technology company, was a big standout. As of 11:30 a.m. EDT, Clover is higher by more than 16%, and this comes on the heels of already strong performance over the past week or so.
There isn't any company-specific news fueling today's rally. Instead, this seems to be driven by investor sentiment that recent short-seller attacks aren't as bad as they seemed, and that Clover Health is a prime candidate for a short squeeze. As of the latest available information, nearly 36% of Clover's float was sold short, making it one of the most heavily shorted names in the market.
Clover Health did have one news item today: The company announced that it would report its first-quarter results on the morning of May 17. In 2020, Clover Health's premium revenue grew by 46% year over year and its member base grew by 36%. Investors will see if the company's momentum is accelerating after its recent SPAC merger.
So, in a few weeks we'll know if the company's growth is sustainable and if these moves to the upside are justified, overdone, or not sharp enough.