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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 down 2.3%, the Nasdaq Composite was down 3.1%, the Russell 2000 index was down 4.7%, the Russell 2000 Growth ETF (IWO) was down 4.4%, and the Russell 2000 Value ETF (IWN) was down 4.9% in the five-day trading session range through August 8th.

SHORT INTEREST GAINERS

• Ortex-reported short interest on Saver Value Village (SVV) had tracked around the 28% level since mid-July, but the bears were inclined to boost their exposure heading into the company after-market Q2 earnings announcement on Thursday were rewarded. Shorts as a percentage of free float jumped from 28.4% to 31.0% this week, and while the stock traded down by just over 5% in the five-day period covered through Thursday, Friday saw a 9.3% decline, with the company missing on the top and bottom line and cutting its revenue guidance by 2% at the midpoint. Moreover, the poor performance by Saver Value earned a downgrade from Goldman Sachs to Neutral, as the firm expressed caution in the outlook for the company's sales and margin due to strengthening headwinds in Canada.
• Estimated short interest in Reddit (RDDT), mentioned last week in reference to its rebound from a month-low 22% two weeks ago, nudged higher for the second consecutive week this week as well. Shorts as a percentage of free float were up from 24.3% to 25.6% as bears chased the sell-the-news momentum in the stock in spite of the company's emphatic Q2 earnings beat and above-consensus Q3 outlook, with a post-earnings 6.8% decline on Wednesday. Meanwhile, despite the heavy trading volume in Tuesday-Thursday period, days-to-cover on the name rose from 3.8 to a record-high level of 4.1. For the week through Thursday, Reddit shares were down 7.5% and have now fallen about 30% from mid-July highs.
• Ortex-reported short interest in MicroStrategy (MSTR) registered some extreme fluctuations this week, rising from split-adjusted 14.3% to a record high of 22%, though after the 10-for-1 stock split effective the close of business on August 1st and the heightened volatility in growth equities earlier in the week that was closely echoed by crypto names, it may take some time for the dust to settle and a clearer picture of relative bearish positioning to emerge. On a split-adjusted basis, shares of MicroStrategy meanwhile ended the week down 10%.
• For the second time this year – first one coming in the final week of June - estimated short interest in Vital Energy (VTLE) troughed around the 22% mark and shot up from that level this week. Shorts as a percentage of free float were up from 23.3% to 31.1% in the five-day period covered, tracking the heavy selling in the stock price last Friday and on Monday of this week. An earnings miss on Wednesday capped off the high-volume five-session activity and prevented the stock from rebounding, with Vital Energy registering an overall decline of 11% in the five-day period covered. Year-to-date, VTLE is now down by about 17%.

SHORT INTEREST DECLINERS

• Ortex-reported short interest in Carvana (CVNA) caved below the 20% threshold to 18.8% in the final week of July heading into its Q2 results. Then, a surprise profit against expected loss in the after-market on July 31st, followed by multiple price target hikes and a Wells Fargo upgrade, saw the stock price spike by 10% the following day, leading to more short-covering. This week, shorts as a percentage of free float on Carvana slipped another two percentage points to 16.4% - marking a multi-year low. Shares were down 8.8% in the five-day period covered as last Thursday proved to be the pinnacle for the stock before macro-driven turmoil set in, though the stock is still up 39% from its early June lows.