Welcome to this week’s installment of “The Short Interest Report” – The Fly’s weekly recap of short interest trends among some of the most widely followed high-short-float stocks. Using the data from our partner Ortex.com, which utilizes the latest information from stock lenders to estimate short interest changes for thousands of publicly traded companies, this report will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios while also considering the short interest data on some of the more volatile and heavier-traded names of the week. Based on the availability of data from Ortex, the report tracks the trading period that covers prior Friday through Thursday of this week, excluding holidays. As a basis of comparison for stocks discussed below, the S&P 500 index was up 1.0%, the Nasdaq Composite was up 0.5%, the Russell 2000 index was up 4.2%, the Russell 2000 Growth ETF (IWO) was up 4.0%, and the Russell 2000 Value ETF (IWN) up 4.4% in the five-day trading session range through October 17.
SHORT INTEREST GAINERS
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Estimated short interest on Spirit Airlines (SAVE) has continued its year-long upward climb, reaching a new all-time high this week with a four percentage point increase to 34%. It’s been an especially volatile couple of weeks for the discount airline – two Fridays ago, the stock sank nearly 40% following a Wall Street Journal report that in the wake of its failed merger with JetBlue (JBLU), the company was in discussions over the terms of a bankruptcy filing. Shares of Spirit were still down about 32% over the period of the last two weeks and down 11% in the five-day span through Thursday, though the stock bounced higher by 30% afterhours on Friday as it was able to reach a deal with creditors, extending the deadline for a debt restructuring to December.
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Ortex-reported short interest on Westrock Coffee (WEST) had consolidated a 24 percentage point ascend to 73% from early August through mid-September with about a ten percentage point retreat, though bearish positioning has once again been on the rise over the past two weeks. This week, shorts as a percentage of free float on Westrock were up just over four points from 66.6% to 70.8%, even though the stock appears to have found its footing. Shares had fallen 47% from July-end to their 2024 lows on October 7th, though the stock has since bounced 29% and was up 26% in the five-day period covered through Thursday.
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Ortex-reported short positioning on CompoSecure (CMPO) saw an upside breach of 60% in mid-September followed by a two-week period of retreat to about 45%. This week however, shorts as a percentage of free float jumped again, rising from 45.1% all the way to 63.1% – a record high. Bearish exposure is tracking the stock price higher as short look to fade the stock advance to its all-time high on Wednesday. CompoSecure shares were up 11% in the five-day period covered through Thursday, and the stock is now up 179% year-to-date.
SHORT INTEREST DECLINERS
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Ortex-reported short interest on MicroStrategy (MSTR) had tracked above 20% from early March through mid-June before turning decisively lower in the third quarter, even briefly falling below 10% in the first week of August. Bearish positioning had bounced to high teens for much of the second half of September, as the stock price trended higher, but shorts were quick to cut bait with the rally picking up steam. This week, MicroStrategy short interest as a percentage of free float slipped from 17% to about 16% and days-to-cover on the name moved lower from 3.3 to 2.7 with a notable pick-up in volume this week. The stock was up 5.5% in the five-day period covered through Thursday but, inclusive of Friday’s 12% spike supported by this week’s breakout in bitcoin price to late-July highs, MicroStrategy has now gained 89% from September 6 lows.
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