Tupperware Brands Corporation (NYSE: TUP) experienced a dramatic increase in its stock value, soaring 23.30% in Tuesday’s premarket trading.
This significant jump follows a 36.43% rally on Monday, fueled by the resurgence of meme stock trading.
The revival was sparked by a tweet from Keith Gill, also known as Roaring Kitty, marking his first social media activity in nearly three years.
High short interest positions Tupperware for potential squeeze
Tupperware’s stock surge appears to be closely tied to its high short interest, which exceeds 24% of its total float.
This substantial short position places the stock at a potential risk of a short squeeze, similar to those experienced by other meme stocks in recent market rallies.
As a result of the premarket action, Tupperware’s shares reached their highest level since January.
Company’s strategic financial maneuvers
Earlier this year, Tupperware Brands disclosed that its lenders had agreed to a forbearance regarding certain defaults, providing the company with a temporary reprieve from potential financial repercussions.
Additionally, Tupperware has been exploring strategic alternatives with the guidance of its financial advisors, aiming to stabilize its operations and financial position.
The forbearance agreement with its lenders is set to last until no earlier than June 30, or until the administrative agent chooses to terminate the forbearance.
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