Short sellers set up for another disappointment ahead of Cricut earnings after 18% drop last time, cover positions in GoodRx ahead of results 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 up 2.2%, the Russell 2000 index was up 4.5%, the Russell 1000 Growth ETF (IWF) was up 2.3%, and the Russell 1000 Value ETF (IWD) was up 0.8% in the period range.
SHORT INTEREST GAINERS
- Estimated short position in GreenSky (GSKY) skyrocketed by nearly 70 percentage points to 79.8% and days-to-cover rose 91% to 0.8 just ahead of its earnings after Thursday's close. Much of that stride took place on Wednesday, when the short interest level hit its highest point on record of 110%, ahead of what would end up a revenue miss. The stock was also down 2.8% in Thursday’s session ahead of post-close results, and in the five-day period covered, shares of GreenSky were down 1.7%.
- Estimated short interest in Del Taco (TACO) jumped from 2% all the way to 38% on Wednesday – the highest on record – before settling on Thursday just above 20%. The significant increase came in the absence of any meaningful news, with the company having reported its Q3 results on October 14 and subsequently giving up all of the gains the stock made into earnings. Del Taco shares are down over 10% since that earnings call but up 0.8% in the five-day period covered.
- Estimated short interest in Cricut (CRCT) nudged just over two percentage points to 22.9% and marked a three-week high while days-to-cover was up 14% to 7.1 – a 2021 high. The company reports Q3 results next Wednesday and traders may be positioning for another disappointment as the stock had plummeted by nearly 20% the day after it reported Q2 results in August. After that earnings call, some of the sell-side analysts opined that while Cricut beat on earnings, its user engagement trends were slowing.
SHORT INTEREST DECLINERS
- After hitting a six-week high over 27% early last week, the estimated short interest in GoodRx Holding (GDRX) has been on a steady decline, falling in all five trading sessions through Thursday to a three-week low of 22.7%. Days to cover on the name is also down 9% to 6.6 and the stock is up 2.7% in the five-day period covered. GoodRx reports its Q3 results next Wednesday and short-sellers may be running for cover after its Q2 earnings beat in August drove a 15% same-day spike in the stock price.
- Estimated short interest in Hostess Brands (TWNK) has fallen to its lowest level on record, sliding another five percentage points to 5.7%. The short position as a percentage of free float had peaked just shy of the 20% mark in May of this year, but the steady gains in the stock has led to an abrupt short covering since then. Shares of Hostess Brands hit another 52-week high earlier this week, and in the five-day period covered, the stock is up 1.2%.
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GSKY TACO CRCT GDRX TWNK Keywords: Short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, GreenSky, Cricut, Del Taco, GoodRX, Hostess Brands, AMC, Gamestop