Estimated short interest in Carvana, Chewy, and Lemonade retain upward momentum despite bounce in growth names
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 up 3.5%, the Russell 2000 index was up 3.7%, the Russell 1000 Growth ETF (IWF) was up 5.2%, and the Russell 1000 Value ETF (IWD) was up 2.1% in the period range.
SHORT INTEREST GAINERS
After three consecutive weeks of shallow declines, the estimated short interest in Carvana (CVNA) was on the rise once again, increasing from 33.3% to just shy of the 35% mark, which is also the highest level since December of 2020. Days to cover on Carvana rose from 1.3 to 1.6. The stock has fallen off a cliff this year to the tune of over 90% of its value, and losses accelerating in April following its much wider than expected earnings loss and the announcement of a $1B capital raise. The bounce in growth names this week helped Carvana shares gain 33%.
Estimated short interest in Chewy (CHWY) has continued to build with its third consecutive week of increases. As shorts pared their bets heading into the company’s Q1 results at the start of the month, the short interest as a percentage of free float had fallen to a six-month low around 19%, but this week’s two percentage point increase to 28% marks a two-month high. In the four-day period covered through Thursday, shares of Chewy are up 14.7%, though the stock remains down nearly 40% year-to-date.
Estimated short interest in EVgo (EVGO) fell to a 4-month low in late May but has now risen for five consecutive weeks, increasing another two percentage points this week to 32.9% - just shy of an all-time high. Days to cover on the name was also up 120 basis points to 10.4. In the four-day period covered, EVgo was up 1.2%.
Shares of Lemonade (LMND) bounced off their 52-week lows around $16 a share late last week, springing some 20% in the four-day period covered. The estimated short interest on the stock has continued to gain however, rising for the third consecutive week from 30.5% to 32.0%. Days to cover on Lemonade was also up nearly two points from 12.2 to 14.1- an all-times high.
SHORT INTEREST DECLINERS
Estimated short interest in EV maker Canoo (GOEV) was down for the fourth consecutive week this week, slipping from 25.1% to 22.3%, just as the stock price continued its slide to fresh all-time lows. Trading volume in the name has been particularly heavy this week with 5.5M-7.1M shares exchanging hands – activity only comparable to the company’s post-earnings session last month – despite the absence of any meaningful news. In the four-day period covered, Canoo was down 12.5%.
Estimated short interest in Citi Trends (CTRN) peaked at an all-time high above 55% in mid-May, but since then, bearish appetite for the value apparel retailer has declined every single week, losing another four percentage points through Thursday to 30.1%. The stock is down over 70% this year, though a positive earnings surprise last month helped to slow the decline as management prided itself on cost controls addressing the adverse impact of inflation on its target market. In the four-day period covered, Citi Trends shares were up 3.6%, with another 4.6% jump amid the overall market rally on Friday.
Keywords: Ortex, short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, AMC, GameStop, Carvana, Chewy, EVgo, Lemonade, Citi Trends