Why Shares of Pagaya Exploded Higher Again Today

Shares of the fintech company Pagaya Technologies (NASDAQ: PGY) had jumped more than 82% as of 3:01 p.m. ET today, likely as a result of highly speculative traders taking advantage of the low float to squeeze the stock higher.

Pagaya uses artificial intelligence to make more accurate credit decisions and help banks and fintech companies acquire more customers at scale. The company merged with and went public through a special purpose acquisition company and began trading independently in June.

Last week, the company's registration statement revealed that the public float was only about 945,000 shares and short interest in the company was about 18% at the end of June, making Pagaya ripe for a squeeze higher. Pagaya's stock at one point on July 20 had more than doubled.

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Source Fool.com