- SmileDirectClub Inc (NYSE:SDC, SDC:US) saw its stock price rocket by more than 16 per cent on Monday, September 13.
- Before markets opened on Tuesday, investors appeared to be showing interest in the stock as it continued to rise on the trending charts.
- SmileDirectClub, a teledentistry company, could be drawing investor attention with its latest announcement.
SmileDirectClub Inc (NYSE:SDC, SDC:US) saw its stock price rocket by more than 16 per cent on Monday, September 13. The orthodontics company’s scrip even hit a day high of US$ 6.32 during the trading session, finally closing at a value of US$ 5.98 per piece.
Before markets opened on Tuesday, investors appeared to be showing interest in the stock as it continued to rise on the trending charts.
What caused SDC stocks to surge? Let’s find out.
Why is SmileDirectClub Inc (NYSE:SDC, SDC:US) stock rising?
SmileDirectClub, a teledentistry company, could be drawing investor attention with its latest announcement.
The oral healthcare provider said on Monday that it is working on a donation program with NGO International Rescue Committee (IRC) to bring basic oral hygiene products to Afghan refugees seeking shelter in the US.
SmileDirectClub said that it plans to provide a total of 20,000 toothbrushes and toothpaste to these people through the next year.
While the Nashville, Tennessee-based company made this official announcement, some reports noted that SDC stocks could also be gaining traction on the back of a ‘coordinated short squeeze’.
Reportedly, some investors used social media platforms like Twitter to trigger a short squeeze for SDC stock, which its daily trading volume rocket to 50.5 million on Monday.
SDC stock performance
SmileDirectClub shares currently record a 52-week high of US$ 16.08. While the teledentistry stock is significantly below this level at the moment, it has surged by more than 29 per cent from its one-year low of US$ 4.63.
The healthcare stock has garnered an average trading volume of about 14.52 million in the last 10 days and that of over 10 million in the past one month.
With a market cap of over US$ 710 million, SDC stock holds a price-to-book (P/B) ratio of 10.87 and a debt-to-equity (D/E) ratio of 3.62.
While this telehealth stock seems to be attracting attention, investors should keep in mind that SmileDirectClub is being probed by Portnoy Law Firm for possible securities fraud.
The Los Angeles-based legal firm had said in August that it might issue a class action into the company on behalf of investors.
Amid this development, SmileDirectClub’s stock price had plummeted by around 24 per cent to US$ 1.62 during trading on August 10, before closing at a value of US$ 5.08 per share.