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 version will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios. This report will also continue to layer 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 will continue to track the trading period that covers prior Friday through Thursday of this week.
As a basis of comparison, the S&P 500 index was down 0.4%, the Russell 2000 index was down 0.4%, the Russell 1000 Growth ETF (IWF) was down 0.3%, and the Russell 1000 Value ETF (IWD) was down 0.5% in the period range.
IRONNET SHORT INTEREST TRACKS STOCK PRICE SHARPLY HIGHER
The correlation between estimated short interest with traffic on the WallStreetBets sub-Reddit and other retail stock price pumping outlets has recently reversed itself, as the spike in reading interest appears to only fuel the Ortex-estimated short-interest levels. This trend was on display over the past couple of weeks in Support.com (SPRT) - where the cycle of increased attention on WSB leading to a spike in stock price leading to a sharp increase in short-seller interest appears to be completing with the stock coming crashing down today back to mid-August levels. Similarly this week, the spotlight fell on IronNet (IRNT), which has become the most-mentioned ticker on WallStreetBets and where the estimated short interest jumped from 0.3% to 16%. If Support.com history is to be repeated, buyer beware. Before today’s 27% decline, IronNet shares were up about 140% in the five-day trading period covered.
SYNCHRONOSS TECHNOLOGIES, WELBILT SHORT INTEREST JUMPS ABOVE 50% FROM SINGLE DIGITS
Outside of the more obvious "meme stocks," short interest activity was also particularly outsized in Synchronoss Technologies (SNCR) and Welbilt (WBT). Synchronoss short positioning was estimated to have risen from 4% to 54% and days-to-cover rose to 7.1 from 0.6. Likewise, Welbilt short interest spiked to 61.7% from 8.9% and its days-to-cover ratio quintupled. In the five-day trading period covered, Synchronoss was down 6.1% and Welbilt's share price was little changed.
SHORT INTEREST IN IROBOT, FISKER AT THREE-WEEK HIGHS
Following the dip that lasted much of August, estimated short interest levels in both iRobot (IRBT) and Fisker (FSR) have trended on similar paths to their respective three-week highs. Short position in iRobot was up over seven percentage points to 27.4% and days-to-cover was up 9% to 14.4. Short interest in Fisker was up five percentage points to 32.1% and days-to-cover rose 10% to 6.4. Stock prices of both of those names were each weak, as iRobot fell 3.4% and Fisker fell 9.7% in the five-day-trading period covered, with multi-month lows seen in both.
ALTICE USA, BIG 5 SPORTING GOODS, DANAOS AMONG BIGGEST SHORT POSITION DECLINERS
Among the most notable short-interest decliners in our Ortex-driven screen, Altice USA (ATUS), Big 5 Sporting Goods (BGFS) and Danaos (DAC) were most prominent on the radar this week. Estimated short interest on Altice was down eight percentage points to 16.5% just as the stock declined 4.6%. Short positioning in Big 5 Sporting Goods and Danaos were down by an even more sizable 20% and 30% margins to 32.8% and 14.1% respectively, even though their bid-to-cover ratios were both higher by about 8% to 4.4 and 3.0. Big 5 shares were down 15.3% for the five-day trading period covered and Danaos ended Thursday down 2.7%.
