Short Report: Bearish bets on AMC Networks recede as stock stabilizes

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 0.9%, the Nasdaq Composite was up 0.5%, the Russell 2000 index was up 4.4%, the Russell 2000 Growth ETF (IWO) was up 4.3%, and the Russell 2000 Value ETF (IWN) was up 4.6% in the five-day trading session range through July 11.

SHORT INTEREST GAINERS

• Ortex-reported short interest in B. Riley Financial (RILY) troughed just below 50% on June 25, but has since rose sharply for two consecutive weeks. This week, shorts as a percentage of free float jumped from 55.2% to 70.4 – the highest level since the last week of April. Trading volumes picked up notably earlier this week, though days to cover on the name were also much higher, rising from 7.1 to 9.0 – the highest level of the year. In the five-day period covered, B. Riley shares were up about 4% through Thursday, though the stock is still down about 14% year-to-date.
• Estimated short interest in Guess (GES) had slipped to a two-month low of about 30% late last week, with bears taking profits in-step with the stock’s near-30% retreat from mid-May. Guess shares regained more than a third of those losses this week, bouncing over 13% in the five-day period covered while enticing renewed short exposure. Shorts as a percentage of free float rose from 30% all the way to 37%, approaching the 40% 2024 high recorded in late June. The stock had not been keeping up with its Apparel peers until this week as it put in some catch-up gains relative to some of the sector’s more value-oriented plays.
• Ortex-reported short interest in Oddity Tech (ODD) brushed the low end of its two-month-long 26% to 31% range last week before bears refreshed their bets this week. Shorts as a percentage of free float was up from 26.4% to 30.4%, while days to cover continued to track higher, rising from 7.6 to a four-month high of 7.9. Shares of the beauty/wellness-focused digital solutions developer have been in consolidation mode following a 20% jolt higher on June 7th following the company’s Q2 guidance raise as the stock closed that gap late last month, though this week’s price action has been more constructive as Oddity rose about 1% in the five-day period covered through Thursday and another 2.4% on Friday.
• Ortex-reported short interest in Petco Health and Wellness (WOOF) cratered by 20 percentage points in mid-June to 19.5%, though over the past five weeks, the bearish positioning is gradually rebuilding. This week, shorts as a percentage of free float were up from 22.6% to 25.1% – a one-month high. The stock, meanwhile, is consolidating the steep run-up during the month of May into early June, rising 14.5% in the five-day period covered though still down 17% from June 5 highs.

SHORT INTEREST DECLINERS

• Estimated short interest in AMC Networks (AMCX) briskly ascended from 22% to over 60% in mid-June, with an equity dilution driven 35% collapse in the stock price on June 17 catalyzing the build-up. With the stock settling in a narrower range over the past three weeks, the bearish positioning is normalizing as well. Shorts as a percentage of free float were down from 59% to 38% this week, while the stock was up just over 5%. Year-to-date, AMC Networks is still down 47% and still within 15% of its 2024 lows.