There are plenty of speculators out there looking for the next meme stock to bet on. Koss (NASDAQ:KOSS) is one such company that appears to be garnering interest in these circles, with KOSS stock surging 143% today on a shortened session.
Importantly, it’s worth pointing out that more than 67 million shares of KOSS stock have traded hands thus far today, far outpacing the stock’s average daily volume of around 900,000 shares. Accordingly, it’s clear there’s a lot of intense buying pressure supporting this rise. Retail investors do appear to be getting excited in certain corners of the market, with speculation also building that this could be a stock poised for a short squeeze.
Let’s dive into today’s move, and try to make sense of what may be driving this little-known headphone maker higher today.
KOSS Stock Surges as Meme Frenzy Picks Up Again
With seemingly no direct posts about Koss from Roaring Kitty (Keith Gill) or others in the meme stock community, today’s move in Koss is certainly intriguing.
The company’s volume today certainly suggests there are a large number of investors (or someone with deep pockets) behind today’s move. Indeed, any stock that more than doubles in a given trading day is going to invite some momentum investors to jump aboard any near-term rally.
However, I think Koss’ relatively low share price, low float and somewhat high short interest ratio of around 8% could be catalyzing certain investors to back this company. The stock’s current borrow rate of more than 36% could certainly indicate that a squeeze could be possible if enough demand for these shares materializes, given how hard they are to apparently source.
The question is whether Koss’ renewed attention from meme traders will invite more serious investors to put up shares for borrowing or if the company will use this opportunity to issue more shares. In both cases, the thesis could be derailed quickly.
We’ll have to see. For now, this is an intriguing stock traders may want to keep an eye on. But with this kind of volatility, I’ll happily watch the proceedings from the sidelines. And institutional investors seem to be mostly thinking the same thing. So, let’s dive into who’s betting big on this stock right now.
Top 5 Investors Betting Big on Koss Stock
For context, this data comes courtesy of Yahoo Finance:
- Vanguard currently owns more than 262,000 shares, or 2.8% of the company’s overall float.
- Dimensional Fund Advisors comes in second, with 136,145 shares, or 1.5% of the company.
- Blackrock (NYSE:BLK) owns 0.7% of the company, or a little under 62,000 shares.
- Geode Capital Management owns 59,467 shares for fourth place, or 0.6% of the overall share count.
- Renaissance Technologies rounds out the list, with 22,660 shares good for 0.2% of KOSS stock.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
