Why ViewRay Stock Is Bouncing Back Today
Shares of ViewRay (NASDAQ: VRAY), a medical equipment provider that focuses on radiation therapy, rose 16% in early morning trading on Monday on higher-than-normal volume. There wasn't a single press release, Securities and Exchange Commission filing, or analyst upgrade released today that can help explain the move. The gains might be attributable to short-covering after Friday's horrific decline, or buying from investors who see value in the share price today.
ViewRay's stock was cut in half last week after the company reported weak second-quarter results and slashed its full-year guidance. Management also announced that its CFO was looking for an exit, which doesn't exactly inspire long-term confidence.
More than 22 million shares of ViewRay's stock were sold short as of July 31, so short-sellers earned a tidy profit from the stock's huge fall. It's possible that today's double-digit recovery is traceable to profit-taking by the shorts, who have to buy the shares on the open market in order to exit their position.
Source Fool.com
