Krispy Kreme Inc (NASDAQ:DNUT) shares are soaring in after-hours Tuesday, continuing momentum from the regular session. Here’s a look at what you need to know.

What To Know: Shares of doughnut maker Krispy Kreme closed Tuesday up 26.69% and are up another 24.69% in after-hours despite a lack of company-specific news.

The stock is seeing increased attention across various social platforms on Tuesday, which suggests the momentum may be retail-driven. Krispy Kreme shares also surged on unusually high volume Tuesday with more than 37 million shares traded versus the stock’s 100-day average of approximately 4.68 million, according to Benzinga Pro.

The increased volatility in shares is likely being driven by high short interest. 26.35% of the float is currently sold short, according to Benzinga Pro data, which makes it a target for momentum traders. Several heavily shorted stocks have seen increased attention in recent sessions after Opendoor Technologies Inc (NASDAQ:OPEN) appeared to spur a resurgence of meme stock traders.

Opendoor’s recent surge sparked some frenzied buying in related names like Offered Solutions and Rocket Companies. Original meme stocks GameStop and AMC Entertainment have also perked up in recent days.

Stocks with high short interest have seen several short-lived periods of increased attention since traders across Reddit';s r/WallStreetBets ignited a massive short squeeze in GameStop and AMC in early 2021.

Other heavily shorted names that recently gained momentum include Kohl’s Corporation, Beyond Meat and Newegg Commerce, among others.

DNUT Price Action: Krispy Kreme shares were up 24.69% in after-hours, trading at $5.15 at the time of publication on Tuesday, according to Benzinga Pro.

Krispy Kreme has exhibited strong price momentum and is trading significantly above its 50-day moving average of $2.99 and 100-day moving average of $3.98. The stock’s current price in after-hours is approaching the 200-day moving average of $7.05, indicating potential resistance ahead. Support may be found near the recent low of $3.26, according to Benzinga data.

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