The shares of Nashville-based MedTech platform for teeth straightening SmileDirectClub (NASDAQ:SDC) have retreated in price recently because investors are concerned about its revenue decline in its last reported quarter. While its high short interest indicates that the stock is a good short squeeze candidate, the company’s bleak financials could limit its upside. So, the question is, is the stock worth betting on now? Read on.Teledentistry company SmileDirectClub, Inc. (SDC) designs and manufactures dental equipment in the United States. The oral care company’s stock has a very high short interest—appproximately 32.8% of its total floating shares have been sold short. However, SDC’s stock price has declined 64.7% year-to-date and 30.4% over the past month. Furthermore, the meme stock candidate is currently trading 73.8% below its 52-week high of $16.08, indicating short-term bearishness.
SDC’s disappointing third-quarter results as surging COVID-19 cases led most people to postpone elective healthcare services, including teeth alignment, have rattled investors.
In addition, the Nashville-based teledentistry company lowered its fourth-quarter guidance because it expects the macroeconomic headwinds to persist. This could further reinforce negative sentiment in the stock.