Shares of Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) surged 15.8% in January, according to data provided by S&P Global Market Intelligence. If anything, I would have expected the stock to fall during the month, considering it got some negative coverage from Wall Street analysts. But the stock appears to have gotten caught up in the short-squeeze mania fueled by GameStop investors.
According to data from Nasdaq, almost 12.2 million shares of Ollie’s Bargain Outlet were sold short as of Jan. 15. As of the company’s most recent quarter, there were approximately 65.4 million shares outstanding. Therefore, almost 19% of total shares are sold short, with short interest up significantly since early September. Furthermore, it would take more than eight trading days for shorts to cover, which is a lot.