Shares of Clover Health Investments Corp (CLOV.O) jumped as much as 109% on Tuesday as it became a new focus for small individual traders on social media platforms who have prompted rallies in heavily shorted U.S. stocks this year.
Traders had exchanged more than $14 billion worth of Medicare-backed insurance seller Clover Health shares by the close, eclipsing the company’s overall stock market value of about $9 billion.
Clover Health shares, which closed up 85.8% at $22.15 after earlier hitting a record high of $24.93, had the highest trading volume on U.S. exchanges Tuesday. More than 700 million shares changed hands versus their roughly 30 million average for the last 10 days.
Its shares, which have been rising slowly since late May, were among the most shorted across U.S. exchanges, after being the target of a report by short seller Hindenburg in February, which took a position in the company.
The “meme stock” phenomenon, which…