Short Report: Bearish bets in crypto, EV technology recede amid profit-taking

Short interest in Coinbase falls to two-month lows, Blink Charging to four-month lows while stocks slip from recent highs

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 down 2.4%, the Russell 2000 index was down 4.3%, the Russell 1000 Growth ETF (IWF) was down 2.5%, and the Russell 1000 Value ETF (IWD) was down 2.5% in the five-day trading session range.

SHORT INTEREST GAINERS

• Ortex-reported short interest in Compass Pathways (CMPS) spiked from 18.4% to 31.1% this week – the highest short position level on record in the name. While there has not been any meaningful news for the company, Wednesday and Thursday trading sessions also saw a step-up in trading volume as the stock lost about 10% of its value, tracking the more pronounced bearish bias in broader market on those days. Overall, in the five-day period covered through Thursday, Compass Pathways shares were down about 14%.
• Estimated short interest in Stoke Therapeutics (STOK) rose from 20.5% to 25.3% this week, the highest level in about three months and the highest level of increase since the first quarter of last year. Until this week, short positioning on the name has been trending lower since mid-October, and while there hasn’t been any specific catalysts reported, the company is scheduled to present at the SVB Securities Global Biopharma Conference next week. In the five-day period covered, Stoke Therapeutics was down just over 7% this week.
• Estimated short interest in PetMed Express (PETS) was up about two percentage points to 23.3%, the highest level in one month. The January surge in growth names has helped PetMed Express (PETS) to a 25% gain heading into its earnings this Monday, but the revenue shortfall reported by the company in Q3 has since taken some of the luster out of the name, and bears appear to be positioning for a deeper correction. In the five-day period covered, PetMed Express was down 10.6%.

SHORT INTEREST DECLINERS

• The January bounce in the cryptocurrency arena spearheaded by the rise in bitcoin price from about $17K to $24K has also buoyed the infrastructure stocks in search of respite from the FTX implosion aftershocks. Trough to peak, Coinbase (COIN) had nearly tripled from January 6th intraday low to last Friday’s high. The rally cooled off considerably this week however, as bitcoin prices retreated below $22K and Coinbase sold off by over 25% in the five-day period covered through Thursday. As Coinbase shares surged however, shorts had also accumulated to reach a six-month high of about 27% of free float by mid-January however. The profit-taking this week, has likely produced some squaring of those bearish bets as Ortex-reported short interest was down from 25.6% to 21.3% – a two-month low.
• Ortex-reported short interest in Blink Charging (BLNK) slipped from 30.8% to 26.9% this week, the lowest level in four months, with days-to-cover on the name falling from 14.7 to a 10-month low of 12.7. The company guided above-consensus revenue for Q4 but also announced a $75M capital raise this Monday, and the dilution has charged the selling toward an overall 27% decline in the five day period covered following an advance of more than 35% in January.
• Estimated short interest in Canoo (GOEV) has slipped from 26% to 16% this week – the lowest level in about two years – as shares fell 25% in the five-day period covered. Canoo has also formally entered penny-stock category, falling below $1.00 per share. Canoo shares have been under sustained pressure through the second half of last year and into 2023, with further declines driven by the $52M capital raise announced by the company this week.

Keywords: Short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, Compass Pathways, Stoke Therapeutics, PetMed Express, Coinbase, Blink Technology, Canoo