Short interest on Cinemark up two points to 21% despite jump in stock price to 52-week highs, more bullish analyst calls 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 up 1.4%, the Nasdaq Composite was up 2.0%, the Russell 2000 index was up 0.4%, the Russell 2000 Growth ETF (IWO) was up 0.7%, and the Russell 2000 Value ETF (IWN) up 0.1% in the five-day trading session range through October 10.
SHORT INTEREST GAINERS
- Ortex-reported short interest on Cinemark (CNK) had fallen to its lowest level of the year late last week at about 19% while the stock had consolidated its August-September gains. Shares have had a surge this week however, rising 7.3% in the five-day period covered and another 3.7% on Friday, with at least three sell-side firms boosting their price targets on the stock on expectation of growing box office returns. The bears also appear to be emboldened by the rising valuation multiples however, boosting their exposure from 19.0% to 21.4%. Year-to-date, Cinemark shares have now more than doubled, easily topping the still-impressive 40%+ returns for Imax (IMAX) and Netflix (NFLX) as well as the struggling AMC Entertainment, which is down over 30%.
- After slipping to a one-month low below 35% two weeks ago, Ortex-reported short interest on Guess (GES) was up just over four percentage points at 37.2% this week and is now within five percentage points of 2024 highs around 42%. Bears are betting that the floor Guess shares have found since mid-September following a 25% pullback over a six-week period since the start of August caves in as consumers pull back on designer brands, though the stock has yielded middle-of-the-pack returns relative to its peers year-to-date with high-single-digit losses. In the five-day period covered, Guess shares were down about 1%.
- Ortex-reported short interest on Groupon (GRPN) largely tracked sideways for much of last month in the 33%-36% range, though with the stock coming off its multi-month lows late last week, bears are boosting their exposure. Shorts as a percentage of free float jumped from 35.6% to 41.5% by Thursday, the highest level of the year, with the stock up 16.2% in the five-day period covered. Year-to-date however, Groupon shares are still down about 17%.
- Estimated short interest on CompoSecure (CMPO) had pulled back from 2024 highs of about 61% seen in mid-September to about 45% over the past two weeks. With the stock sustaining its march higher since reporting a Q2 earnings beat in early August – shares are up about 90% - bears are looking for opportunities to pick a top. This week, shorts as a percentage of free float were up from 45.1% to 52.4% while the stock traded up 2% in the five-day period covered, with another 3% added on Friday.
SHORT INTEREST DECLINERS
- Ortex-reported short interest on Savers Value Village (SVV) hit a five-month high of 37.7% in the final week of September, though bears have been pulling back exposure since then. Shorts as a percentage of free float were down for the fourth consecutive week this week, sliding from 27.4% to 21.5% - a 2024 low. Despite the volatility in short positioning however, the stock has largely tracked sideways for about a month. This week, shares were flat in the five-day period through Thursday prior to Friday's 4% gain, though year-to-date, Savers Value Village is still down about 40%.
- Ortex-reported short interest on Funko (FNKO) had peaked at a multi-year high of 30.5% in mid-August, though since then, the bearish positioning has seen a steep slide lower. Shorts as a percentage of free float on Funko fell for the seventh consecutive week this week, down from 23.0% to 16.6% - now a one-year low. The stock, meanwhile, has also had a firm month of trading, rising 28% from September 6th lows. This week, Funko shares were up 5%, and the stock is now up 58% year-to-date.
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CNK GES GRPN CMPO FNKO SVV Keywords: Short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, Cinemark, Guess, Groupon, CompoSecure, Funko, Savers Value Village