Kohl's Surges 30% Amid Reddit-Driven Short Squeeze Frenzy

Kohl's stock surged 25% on Tuesday, July 22, after a Reddit-driven rally fueled by coordinated buying activity on WallStreetBets, targeting the stock's high short interest. The stock briefly hit an intraday high near $19.75 before settling in the $13-$14 range. The rally was fueled by the goal of triggering a massive short squeeze that could send shares "to the moon." The stock's high short interest, with around 49% of its float, and low share price, near multi-decade lows, contributed to the frenzy.

Kohl's Corporation (NYSE: KSS) experienced a significant surge in its stock price on Tuesday, July 22, as a Reddit-driven rally fueled by coordinated buying activity on WallStreetBets targeted the stock's high short interest. The stock briefly reached an intraday high near $19.75 before settling in the $13-$14 range. The rally was fueled by the goal of triggering a massive short squeeze, which could potentially send shares "to the moon."

The massive jump in Kohl's shares was sparked by its extremely high short interest, with around 49% of its float sold short. This set the stage for a classic short squeeze, where traders betting against the stock are forced to buy shares to cover their positions, driving prices even higher. The low share price, near multi-decade lows, also contributed to the frenzy.

The rally was part of a growing trend of meme stocks—companies with weak fundamentals but massive social media attention—targeted by retail investors. Reddit users pointed to the high short interest and the potential for a short squeeze as reasons to invest in Kohl's stock.

While the stock surged 25% on Tuesday, it remains down 3% for the year. The short squeeze phenomenon extended beyond Kohl's, with Children's Place (NASDAQ: PLCE) also gaining 19% on Tuesday. Children's Place similarly carries a high short interest of 50%.

The dramatic rally comes as Kohl's faced significant short interest of approximately 53 million shares, representing about 49% of its 112 million share float, according to recent data. This high level of short interest made the stock vulnerable to a coordinated buying effort, similar to previous Reddit-driven rallies in heavily shorted stocks.

Wall Street analysts have maintained largely negative or neutral stances on Kohl's. Goldman Sachs recently raised its price target on the stock from $5 to $7, citing "reacceleration in top line growth and cleaner inventories." However, this target remains well below Monday’s closing price of $9.58, highlighting the disconnect between the current rally and fundamental analyst valuations.

The short squeeze phenomenon extended beyond Kohl's, with Children’s Place (NASDAQ:PLCE) also gaining 19% on Tuesday. Children’s Place similarly carries a high short interest of 50%.

The dramatic rally comes as Kohl's faced significant short interest of approximately 53 million shares, representing about 49% of its 112 million share float, according to recent data. This high level of short interest made the stock vulnerable to a coordinated buying effort, similar to previous Reddit-driven rallies in heavily shorted stocks.

References:

[1] https://www.reddit.com/r/wallstreetbets/comments/1m6giaq/got_850k_of_kohls_cash_this_morning_kss/
[2] https://www.cnbc.com/2025/07/22/stocks-making-the-biggest-moves-midday-kss-gm-lmt-medp.html
[3] https://finance.yahoo.com/news/kohl-stock-soars-reddit-fueled-140839291.html
[4] https://newsable.asianetnews.com/markets/kohl-s-medpace-general-motors-lockheed-martin-northrop-grumman-stocks-making-the-biggest-moves-today-articleshow-fke6058
[5] https://m.economictimes.com/news/international/us/kohls-moon-mission-stock-jumps-30-percent-as-reddit-hype-triggers-massive-rally/articleshow/122839851.cms