Shares of Sirius XM Holdings Inc. (NASDAQ: SIRI) skyrocketed over 42% on Thursday, with trading volume reaching 126 million shares. The skyrocketing prices prompted trading halts due to extreme fluctuations in the market.
The unusual rise is attributed to a “squeeze action” where short-sellers rushed to cover losses, pushing the stock even higher. Per Benzinga Pro, approximately 34.45% of the available shares of Sirius XM were sold short, making it one of the most heavily shorted stocks in the market.
The surge in stock prices caught the attention of social media platforms, and discussions about Sirius XM flooded Stocktwits, making it one of the most talked-about tickers.
Investors are watching Sirius XM as it gears up to report its second-quarter financial results. The earnings announcement is scheduled for August 1. Estimates from Benzinga Pro suggest that the company is expected to post earnings of 7 cents per share on quarterly revenue of $2.24 billion. However, it’s worth noting that Sirius XM has missed earnings estimates in three out of the last four quarters.