What happened
Shares of Lucira Health (LHDX) -- a maker of consumer-friendly at-home COVID-19 tests -- climbed as much as 40% higher Friday afternoon. The move prompted a temporary halt in trading of shares.
There was no news from the company. Shares remain up more than 20% as of 3:30 p.m. EDT on almost five times the average daily volume.
Image source: Getty Images.
So what
Lucira only has a $300 million market capitalization, so traders piling into the stock based on momentum could be having a significant impact on the price. Despite the lack of news, the stock was a popular topic of discussion on Twitter. Most of the chatter centered on previous highs or trading patterns -- two factors that bear no relationship to the underlying value of the company.
Now what
Lucira went public in early February and more than doubled in its first two weeks of trading. Until the move today, the stock had lost more than 80% of its value since that mid-February peak.
Both the company's prescription test kit and over-the-counter offering are sold out online.
Other tests -- like Binax from Abbott Laboratories -- were available. That might indicate high demand for Lucira or constrained manufacturing. Traders still holding shares should find out in mid-July when the company will likely report second-quarter earnings.
