Aston Martin Lagonda Global Holdings Plc surged as much as 22% on Monday in an unusual rally that some analysts attributed to a short squeeze.
(Bloomberg) — Aston Martin Lagonda Global Holdings Plc surged as much as 22% on Monday in an unusual rally that some analysts attributed to a short squeeze.
There wasn’t a clear reason behind the move, but shares of the luxury car maker have spiking higher for the past few days. The rally kicked off last week after the company reported strong results and predicted it’ll be able to ramp up deliveries in the second half as supply chain shortages ease.
Some analysts also speculated the Fernando Alonso’s surprise third-place finish for the Aston Martin Racing team at the Bahrain Grand Prix this weekend may also be benefiting the stock.
“Could be some shorts covering or generally improved perception on the back of reassuring FY22 results,” said Anthony Dick, an auto analyst at Oddo BHF. “It’s also possible the F1 performance could have something to do with it.”
Aston Martin Lagonda pared some of the gains later in the session, trading up 14% to 274 pence as of 11:57 a.m. in London.
Shares out on loan, an indication of short interest, represent about 11% of Aston Martin’s free float, according to data from S&P Global Market Intelligence as of March 2.
Other analysts told clients to avoid buying Aston Martin at this level.
“We think shares have run ahead of themselves and we would seek better entry points,” said Jefferies analysts including Philippe Houchois.
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