Short interest on Applied Digital falls from 22% to 14% as upward momentum in stock initially spurred by Nvidia investment grows further 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 0.8%, the Nasdaq Composite was down 1.5%, the Russell 2000 index was down 1.4%, the Russell 2000 Growth ETF (IWO) was down 1.2%, and the Russell 2000 Value ETF (IWN) was down 1.4% in the five-day trading session range through October 3.
SHORT INTEREST GAINERS
- Ortex-reported short interest on Designer Brands (DBI) has been on a steady upswing since late August when it breached the 30% level to the upside. This week's rise in short positioning from 36.8% to 39.4% - a record high - marks the fifth consecutive week of increase. Meanwhile the stock has also marched higher. Investors have looked beyond the disappointing Q2 earnings print reported on September 11th. Shares had initially fallen over 11% the day of the results, but closed that gap down within three trading session and have since clocked a 31% return, though in the five-day period through Thursday of this week, the stock price saw some pressure with a roughly 6% pullback.
- Ortex-reported short interest on Petco Health and Wellness (WOOF) had matched a two-and-a-half month low of 24.5% last Thursday, before a more pronounced rise in the stock price also saw the bears increase their exposure. Shorts positioning as a percentage of free float nudged from 24.5% to 26.1%, a three-week high, with days to cover also jumping from 2.1 to 3.1. Shares, meanwhile were up 20% in the five-day period covered and have now more than doubled from mid-August lows. Year-to-date, Petco shares have now returned just over 70%.
- Ortex-reported short interest on Telesat (TSAT) has come off its two-week lows below 55% as of late last week, rising this week by about seven percentage points to 62.6%. Short positioning was up in conjunction with the recent sharp rise in the stock price – shares are up 14% in the five-day period covered and 77% in the past two months, though year-to-date, the stock is up 30%.
- Estimated short interest in AMC Networks (AMCX) had slipped to a four-month low below 22% late last week as shorts took profits following an 18% pullback in the stock during the prior week. With AMC Networks shares rising about 12% from those levels in the five-day period covered this week, bears are refreshing their bets - short interest as a percentage of free float on the stock was up from 21.9% to 24.5% through Thursday.
SHORT INTEREST DECLINERS
- Ortex-reported short interest on Applied Digital (APLD) is indicating that a 155% jump in the stock price over the past month to 9-month highs has worn on patience among the bears. The stock had fallen to a four-month low in the first week of September, but a $160M investment from Nvidia (NVDA) reversed its fortunes overnight, sparking a 65% rally the day of the announcement. Short expression as a percentage of free float, meanwhile, had seen a more negligible change initially, remaining around 18% and then heading up in the second half of September to as high as 22%. As the stock extended its rally late last week to one-year high however, bears are now scaling back, with short position as a percentage of free float this week falling from 21.6% all the way down to 14% - the lowest level since mid-June. This week through Thursday, the stock has consolidated its gains with a slight 2% correction.
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DBI WOOF TSAT AMCX APLD Keywords: Short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, Designer Brands, Petco Health and Wellness, Telesat, AMC Networks, Applied Digital