Shares of Angi (ANGI 3.95%) jumped by 13.5% Thursday even though there was no news out the home-services marketplace operator. Instead, a short squeeze appeared to be driving the stock's move, as there was unusually high trading volume in it during the session.
Trading volume for Angi was 3.1 million shares for the session, nearly triple its normal level and its highest volume in more than four months. That's a strong sign that a short squeeze played a role in the action Thursday, as 13% of the float (8.7 million shares) is sold short. In other words, a meaningful percentage of investors are betting that the stock will fall.
The stock rose steadily over the course of the session, another sign of a squeeze, with as many as 200,000 shares changing hands in a single trade.
Angi shareholders got some good news on Sept. 13 when the company revealed August metrics that were better than expected, including a 21% increase in revenue. That propelled the stock up by a double-digit percentage for last week overall, and may be encouraging more bullish bets now.
Angi, which was formed in 2017 when IAC engineered a merger between HomeAdvisor and Angie's List, has been a volatile battleground stock throughout its history. As the leading home-services marketplace, the company has a lot of potential, but has historically struggled to monetize interest from homeowners and disrupt a market valued at roughly $500 billion.
The company brought in a new CEO, Oisin Hanrahan, earlier this year, and rebranded itself as Angi. It's also betting on new concepts like Angi Services, a pre-priced service that makes booking jobs seamless for homeowners and service providers, and a new membership program, Angi Key, which offers benefits like 20% off pre-priced services for $30 a year.
If those new offerings catch on, the stock could have a lot of room to run from here.