Welcome to this week’s episode of “The Short Interest Report” – The Fly’s weekly summary of the short interest trends among some of the most followed high-short float stocks. Using data from our partner Ortex.com, which uses the latest information from equity lenders to estimate changes in short interest rates for thousands of publicly traded companies, this report will screen some of the biggest changes in short interest rates as a percentage of the free float and the number of days. -to-cover ratios, while also taking into account short interest data on some of the week’s more volatile and heavily traded names. Based on data availability from Ortex, the report tracks the trading period running from Friday to Thursday of this week, excluding holidays. By comparison, the S&P 500 Index rose 1.0%, the Nasdaq Composite rose 0.5%, the Russell 2000 Index rose 4.2%, the Russell 2000 Growth ETF (IWO) rose 4.0 %, and the Russell 2000 Value ETF (IWN) rose 4.4% in the five-day trading session through October 17.
SHORT INTEREST WINDERS
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Estimated short interest on Spirit Airlines (TO RESCUE) has continued its multi-year upward climb, hitting a new all-time high this week, rising four percentage points to 34%. It’s been a particularly volatile few weeks for the discount carrier: Two Fridays ago, the stock fell nearly 40% following a Wall Street Journal report that the company was discussing terms of contract in the wake of its failed merger with JetBlue (JBLU). a bankruptcy petition. Shares of Spirit were still down about 32% in the past two weeks and 11% in the five-day period through Thursday, although the stock rose 30% after hours on Friday as it was able to reach a deal with creditors, helping to deadline for debt restructuring was extended to December.
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Ortex reported short interest on Westrock Coffee (WEST) had consolidated a 24 percentage point gain to 73% from early August to mid-September, with a pullback of around ten percentage points, although bearish positioning has been on the rise again over the past two weeks. This week, shorts as a percentage of the free float on Westrock rose just over four points, from 66.6% to 70.8%, even as the stock appears to have found its footing. Shares were down 47% from late July to their 2024 low on Oct. 7, although the stock is up 29% since then and up 26% in the five-day period through Thursday.
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Ortex reported short position on CompoSecure (CMPO) saw a 60% upside breakout in mid-September, followed by a two-week period of pullback to around 45%. This week, however, short positions as a percentage of the free float rose again, from 45.1% to 63.1% – a record high. The bearish exposure follows the stock price higher as it looks like the stock price will slide to an all-time high on Wednesday. CompoSecure shares rose 11% in the five-day period through Thursday, and shares are now up 179% year-to-date.
SHORT RATE DEALERS
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Ortex reported brief interest in MicroStrategy (MSTR) had been above 20% from early March to mid-June, before turning decisively lower in the third quarter and even briefly falling below 10% in the first week of August. Bearish positioning had risen to high teens levels for much of the second half of September as the stock price trended upward, but shorts were quick to act as the rally gained momentum. This week, MicroStrategy’s short interest as a percentage of free float fell from 17% to around 16% and days to coverage on the name fell from 3.3 to 2.7, with a notable increase in volume this week. The stock rose 5.5% in the five-day period through Thursday, but including Friday’s 12% spike, buoyed by this week’s bitcoin price breakout to late July highs, MicroStrategy is now Up 89% from September 6 lows.
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