The stock market was having a modestly strong day on Wednesday, with the S&P 500 and Nasdaq slightly higher as of 3 p.m. EDT. However, insurance technology company Lemonade (LMND 4.32%) was a major standout, with shares higher by nearly 12%.
While the move is certainly good news for Lemonade investors, there's no real news driving the stock higher. It's worth pointing out that some of the most closely followed growth stocks are also among the market's top performers today.
Lemonade has been the subject of several short-seller reports recently, and its shares had fallen by more than 60% from recent highs. We're seeing a clear rebound in some of the other high-flying stocks of early 2021 that had recently experienced corrections, as well.
It's also worth noting that some of the so-called "Reddit stocks" are soaring today, as well, particularly those with high levels of short interest. For example, GameStop (GME 8.57%) and AMC Entertainment (AMC 8.03%) were higher by 15% and 20%, respectively, at 3 p.m. EDT, and both have just over 20% of their float sold short as of the latest available information.
Lemonade is also a highly shorted stock, which shouldn't be too much of a surprise, considering it's been a popular target of short-selling reports. In fact, with 22% of its available shares sold short, Lemonade has higher short interest than both GameStop and AMC. So it's entirely possible that we're seeing a bit of a short squeeze in action in the insurance-disruptor's stock.