Xtant Medical XTNT Stock News

Xtant Medical Holdings Inc (NYSEAMERICAN: XTNT) is rocketing in the market this morning, trading on gains that are better stated in multiples than percentages. While no press releases have been issued, an SEC filing gives us some clues as to what started the movement that led to an apparent short squeeze. Here’s what’s going on:

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XTNT Stock Rockets As Shorts Run For Cover

As mentioned above, there’s an apparent short squeeze taking place on Xtant Medical Holdings stock. For those of you who are not familiar with the term, a short squeeze takes place when a heavily shorted stock starts to move up.

Short sellers in that stock begin to lose money and race to buy shares to cover their positions. This leads to an incredible increase in price fueled by high-volume buying.

So, what is it that triggered the movement in the first place?

There was an SEC filing made late yesterday surrounding beneficial ownership. The 13D filing said that OrbiMed Advisors now owns a total of 14,014,321 shares of XTNT stock. That works out to be about 77.7% of the entire company.

When big money investors dive into a company head first like this, investors tend to follow. This is likely the cause for the beginning of the movement. But it goes further than that.

On XTNT message boards across the internet, we’re seeing chatter that the company may be taken over by OrbiMed. It seems as though investors believe that with such a large percentage of the company now held by OrbiMed Advisors, the firm may move to acquire the entire company.

Of course, these rumors are unverified and could be far from the truth, but it’s something fun to think about.

Nonetheless, the purchase of such a large percentage of the company by an institutional investor suggests that something big is on the horizon.

The Bottom Line

The bottom line here is that Xtant Medical was a heavily shorted stock. When OrbiMed announced that it has taken ownership of more than 70% of the company, excitement ensued and shares started to be purchased, triggering a short squeeze.

With the SEC filing in mind, it’s likely worth paying close attention to XTNT stock as a potential acquisition or other big catalyst is likely around the corner.

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