Estimated short interest in Riot Blockchain, Marathon Digital, and Coinbase reaches multi-month highs as heavy selling in crypto stocks continues 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. As a basis of comparison for stocks discussed below, the S&P 500 index was down 8.7%, the Russell 2000 index was down 10.9%, the Russell 1000 Growth ETF (IWF) was down 9.9%, and the Russell 1000 Value ETF (IWD) was down 8.4% in the period range.
SHORT INTEREST GAINERS
- Amid heavy selling in the cryptocurrency space during April-May, when bitcoin prices fell from $48K to $28K, estimated short interest in Riot Blockchain (RIOT) largely held steady just below 20%. The return of selling pressure over the past week however saw that bearish position break out of a range, topping 21% for the first time in nine months. The short expression in other crypto-linked stocks are also notably higher, with short interest in Coinbase (COIN) up six percentage points to 24.2% and Marathon Digital (MARA) topping 24% for the first time on record. Riot Blockchain shares were down another 17% in the five-day period covered, and as bitcoin prices continue to tumble below the $20K mark into the weekend the uptrend in short interest on the name appears to have further momentum.
- Revlon (REV) share have collapsed this year, with the decline accelerating in April just as the short position on the stock began to build in earnest. Volatility and volume on the stock were at their apex this week as Revlon plunged when the company formally announced that it is seeking a Chapter 11 reorganization early on Thursday before rebounding on press reports of Indian conglomerate Reliance Industries considering a buy. Estimated short interest in Revlon jumped from 57% to 72%, though the stock was down 55% in the five-day period through Thursday before Friday’s 91% bounce.
- Estimated short interest in Vertex Energy (VTNR) had fallen sharply in the first half of June from 32% at the start of the month to a low of 20% this past Tuesday, though by Thursday, the short position as a percentage of free float had risen back to 25%. The narrative in the oil patch has shifted from inflation-induced price spike to recession-driven pullback, as Vertex joined the selloff among other refiners to the tune of 14% on very strong volume just as oil prices retreated by 6% to $110 in the front-month contract. In the five-day period through Thursday, Vertex Energy shares were down 15.1%.
SHORT INTEREST DECLINERS
- GitLab (GTLB) shares have come off their post-earnings highs as growth stocks came under especially heavy pressure from rising interest rates, though the short position on the name has continued to recede. The estimated short interest in the stock was down nearly two percentage points to 10.8% - a 6-week low - and days-to cover slipped from 3.6 from 2.3. In the five-day period through Thursday, GitLab shares were down 10.6%.
- Estimated short interest in AMC Networks (AMCX) had dipped to its lowest level on record early in the week to as low as 6.4% before ending Thursday at just over 9% - a one point decline from the prior week. Days to cover on the name was also down over 70 basis points at 7.7. Short position as a percentage of free float had been steady in the 15%-20% range for much of the year before a more precipitous decline ensued in June just as the stock began to cascade lower. In the five-day period through Thursday, AMC Networks shares were down 18.6%.
Symbols:
RIOT COIN MARA REV VTNR - $11.79 /
-2.055 (-14.85%)
GTLB AMCX Keywords: Short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, GameStop, Riot Blockchain, Coinbase, Marathon Digital, bitcoin, cryptocurrency, Revlon, Vertex Energy, Gitlab, AMC Networks