Academy Sports & Outdoors Inc (NASDAQ: ASO) shares jumped nearly 13.9% in the regular and after-hours trading on Monday.
What Happened: There was no immediate trigger for the escalation in the share prices but the company attracted high social media interest. Late Monday, Academy Sports was at the no. 2 spot on the Stocktwits list of trending triggers.
On r/WallStreetBets — the Reddit forum best known for the short squeeze in stocks like GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC) — Academy Sports was the fourth most discussed stock with 766 mentions, according to data compiled by SwaggyStocks.
A post on the forum posted by u/Velociraptorsss claimed that ASO is “fundamentally undervalued.”
“The stock has been shorted from the start because I believe it was just lumped into the typical brick & mortar category and will just assumed would bleed out due to online shopping,” wrote the poster.
Why It Matters: Academy Sports attracted a 35.34% short interest and was among the most shorted stocks at press time, as per HighShortInterest.com data.
The sporting goods and outdoors retailer released its fourth-quarter results on Mar. 30. Net sales rose 16.6% to $1.6 billion in the fourth quarter on a YoY basis.
Q4 Non-GAAP EPS was $1.09 which was more than double that of analyst estimates of 52 cents per share.
Price Action: Academy Sports shares closed nearly 9.2% higher at $31.70 and rose another 4.73% to $33.20 in the after-hours session on Monday.
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