Estimated short interest in Revlon recoils from an all-time high of 105% with no signs of deal progress a month after speculation of a buyout by Reliance 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 5.5%, the Russell 2000 index was up 7.6%, the Russell 1000 Growth ETF (IWF) was up 6.5%, and the Russell 1000 Value ETF (IWD) was up 3.0% in the period range.
SHORT INTEREST GAINERS
- Short interest in Beam Therapeutics (BEAM) has been tracking higher hand in hand with the rapid run-up in the stock price. Ortex-estimated short position bottomed around 17% in mid-June and has now reached nearly 25% as of this week, rising nearly two points in the five-day period, while exchange-reported shorts are up to 22% as of June-end. The stock has also had a sharp reversal – losing half of its value in the first half of the year but recovering most of those losses over the past month. In the 5-day period covered, Beam Therapeutics shares are up 21.4%.
- Estimated short interest in Gossamer Bio (GOSS) jumped two percentage points to 21.3% as of Thursday after briefly topping 22% mark on Tuesday – the highest level in three months. Gossamer shares also bottomed below $6 in mid-June, though the stock was spurred higher last Wednesday with the announcement of a $120M private placement, and Piper’s Yasmeen Rahimi indicated that the fundraising suggests a positive data readout for the company later this year. In the 5-day period covered, Gossamer Bio shares are up 8.8%.
- Canoo (GOEV) shares have leveled off from the Walmart (WMT) EV order catalyst discussed last week, though the estimated short-interest on the stock has continued to climb. Ortex data showed the short position on Canoo topping 30% for the first time in four months, rising nearly two percentage points in the five-day period covered, though the stock was down 12.1% in the five day period covered.
- Estimated short interest in Bed Bath and Beyond (BBBY) had come in from a “dumpster fire earnings”-fanned 18-month high 43% to 37% last week, though this week, bearish appetite appears to have returned along with a “rising-tide” run-up in the stock price. Prior to Friday’s 12% profit-taking retreat, shares were up 22.8% in the five-day period covered by this report, while the Ortex-reported short position as a percentage of free float was up over two percentage points to 40.1%.
SHORT INTEREST DECLINERS
- Estimated short interest in Revlon (REV) peaked at an all-time high above 105% last week but lost over ten percentage points to close this week just below 95%. The low for the week was around 91%. Recall that the beaten down beauty / personal-care product manufacturer had quadrupled in price in mid-June on press speculation of an Indian conglomerate Reliance considering a buyout of the company, though there hasn’t been much in terms of further developments on the deal since Reliance said it will not comment on the report on June 27. The stock is down over 30% from its June 22 peak, and traded off by 3.3% in the five-day period covered.
- Estimated short interest in Verve Therapeutics (VERV) was down over three percentage points to 35.6% - the lowest level since early May. The stock has doubled in the span of two weeks after raising $400M in capital at the start of the month and then announcing the dosing of its first patient in the Verve-101 study on July 12. Verve Therapeutics shares slipped nearly seven percent on Friday, though the stock was up over 35% in the five-day period covered by the latest Ortex data through Thursday.
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BEAM GOSS GOEV WMT BBBY REV VERV Keywords: Short selling, short interest, days to cover, securities lending, utilization, sentiment analysis, AMC, GameStop, Revlon, Canoo, Beam Therapeutics, Gossamer Bio, Bed Bath Beyond, Verve Therapeutics