Bearish appetite in Stitch Fix growing louder again as stock closes at record lows 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.
SHORT INTEREST GAINERS
- Estimated short interest in HighPeak Energy (HPK) jumped from 40% last week to a record high of 225% this Wednesday before ending the week at 193%. Days to cover ratio on the name was also up nearly 4-times to 5.8. The stock had spiked over 30% last week following a positive feature on CNBC, and while the rally had spilled over into this week, short-sellers have also taken notice of the excess volatility. In the five-day period ended Thursday, HighPeak Energy was up 10.3%.
- Estimated short interest in Stitch Fix (SFIX) shares hit its highest level in the past six weeks after the company reported earnings and cut its FY22 revenue outlook on March 8 above 21%, but after a period of respite, the bears are nibbling in the options market over the past couple of days. In the five-day period covered, the short position as a percentage of free float was up 170 basis points to 19.8, days-to-cover nearly doubled to 1.37, and Stitch Fix shares fell 5.0%, with another 2.3% lost on Friday to its first close below $9 on record.
- Medical Devices had generally fared better than most other groups in the Healthcare sector prior to Friday’s broad sell-off, though some of the more elective-oriented names had already experienced a more pronounced retreat. Plastic-surgery focused micro-cap Sientra (SIEN) saw its estimated short interest rise 150 basis points through Thursday to 19.9% - a three-week high – with days to cover also rising nearly three points to 12.0. In the five-day period ended Thursday, Sientra shares were down 17%, with another 14% loss coming in Friday’s carnage.
- Estimated short interest build-up in commercial BEV trucker Nikola (NKLA) had receded in the wake of its Analyst Day late last month when the company announced that the production of its electric semi-trucks began on March 21st, but with the stock peaking on March 31, the bearish expression has risen again. Short interest as a percent of free float in Nikola was up 130 basis point this week to 26.8%, days to cover on the stock hit a six-month high at 7.5%, and shares were down 6.5%.
SHORT INTEREST DECLINERS
- Estimated short interest in Codex DNA (DNAY) is down about four percentage points this week to 18.4% while days-to-cover on the name is off by more than a point at 7.0%, a four-week low in both measures. The stock sold off heavily after its wider than expected loss and guidance cut on March 22 , though volatility in this mRNA vaccine development player has since subsided. In the five-day period ended Thursday, Codex DNA shares were down 6.7% as share held support just above the $4.00 level.
- Short interest in iStar (STAR) had been gradually growing for nearly a year, though with the rise in interest rate volatility over the past four months or so, price action in this rate-sensitive commercial real estate finance innovator has topped out and sparked some profit-taking on the bear side. The stock is down by a third from its November highs and off by 8.1% in the five-day period covered. Along with its third consecutive week of selling, the estimated short position as a percentage of free float on iStar is also down by about eight percentage points to 19.7%.
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HPK SFIX SIEN NKLA DNAY STAR Keywords: Short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, AMC, GameStop, HighPeak Energy, Clarus Therapeutics, Stitch Fix, Sientra, Codex, iStar