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Scientific Games Soars Midday; Short Squeeze in Play?

Published 05/08/2019, 11:35 AM
Updated 05/08/2019, 11:41 AM
© Reuters.

Investing.com - Casino and lottery games maker Scientific Games soared in midday trading in what looked like a classic post-earnings short squeeze.

Scientific Games (NASDAQ:SGMS) stock jumped 18%.

The company reported mixed quarterly results after the bell yesterday.

It said it lost 26 cents per share, much wider than the 4 cents per share expected by analyst forecasts compiled by Investing.com. But revenue of $837 million was better than the forecast of $834 million.

The loss was also much narrower than the year-ago figure of $2.24 per share.

The company also gave bulls something more to hang one, saying it raised $301 million following an IPO for a minority stake in its social gaming business SciPlay. The money raised will go to pay down debt.

That looked like enough good news to help the stock and leave short-sellers looking to cover positions.

About 22.5% of the stock is held short, according to ShortSqueeze.com, and shares were sold sharply this week going into earnings.

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