Short Covering Gives Crocs Stock a Pop

Crocs (CROX) has slowly but surely came out of the cellar over the past few days. Following a breakout above $30 resistance on Tuesday, the stock managed to string together four consecutive days of gains for the first time in quite some time. At the time of writing, the stock was higher by $1.31, or 3.77%, to $36.10 on moderate volume of 4.8 million shares, and was trading just under its 50-day moving average of $36.41 after hitting a high of $37.39 earlier in the session.

Momentum traders have piled into the stock following the technical breakout, no doubt spurring some shorts to cover at these relatively depressed prices. Of the 71.28 million shares in the public float, 22.6% or 17.55 million shares are short, up from 16.47 million shares short the prior month.

Related Articles:

Jan. 30 Crocs Breaks $30 Chokehold

Jan. 9 No Relief Yet for Crocs

Jan. 8 Crocs Selloff Overdone, Healthy Bounce Likely

Comments

[sliman]

Crocs will move on better than expected earnings. Then you will see some real short covering. Stock is just too cheap.