Exela Technologies (NASDAQ:XELA) Stock Pulls Back After The Monster Rally

Over the course of the past weeks, the Exela Technologies (NASDAQ:XELA) stock has emerged as one of the more notable gainers as investors continued to pile on to it in a big way.

However, on Thursday, the stock went through a bit of a correction and declined by 17% amidst a selloff. That being said, investors need to keep in mind that despite the decline yesterday the stock is still up by 130% over the past month. The stock seems to have gone on this remarkable rally owing to a short squeeze that was unleashed by retail investors.

More importantly, the retail investors have showed the gumption of holding on to their positions and that was the reason for the handsome gains over the past month. Retail investors from Reddit and other leading social media platforms have identified the Exela stock as their latest target when it comes to short squeeze. They have been trying to drive the short sellers out of the stock and that has naturally led to a rally in the stock. As of July 14, the stock had a short interest of as much as 26% and hence it was not a complete surprise that Exela had been targeted. 

Market Reaction:

On Thursday, XELA stock slid 17.50% at $3.30 with more than 128.40 million shares, compared to its average volume of 53.22 million shares. The stock had moved within a range of $3.1600 – 3.8000 after opening the trade at $3.78. Over the past 52-week, the stock has been trading within a range of $0.9900 – 7.8200.