Why Kohl's Stock Was Skyrocketing Today

Core Viewpoint - Kohl's shares experienced a significant surge, driven by meme stock interest and a price target increase from Goldman Sachs, despite the bank maintaining a sell rating on the stock [1][2]. Group 1: Stock Performance - As of 10:18 a.m. ET, Kohl's stock was up 28.9% with exceptionally high trading volume, having previously jumped as much as 105% in pre-market trading [2]. - Trading was halted due to a volatility trigger, indicating extreme market activity [2]. - Nearly the entire float of Kohl's, 104 million shares out of 112 million shares outstanding, had been traded before 10:30 a.m. ET [6]. Group 2: Meme Stock Dynamics - Kohl's fits the profile of a meme stock, characterized by being a small, consumer-facing company with a well-known brand and high short interest, which was 63% of the float as of mid-June [5]. - The recent surge in meme stocks, following Opendoor Technologies, suggests a renewed interest in this category [4]. Group 3: Company Challenges - Kohl's reported a net sales decline of 4.1% in the first quarter and anticipates comparable sales to decline by 4%-6% for the year, although it expects a modest profit [7]. - The company's current ratio is 1.1, indicating potential difficulties in meeting future financial obligations, especially if cash flow turns negative [8]. - The unlocking of purported real estate value may be challenging, as evidenced by similar situations with other retailers like Macy's [8].