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Short Report: Bearish views reach record high on Silvergate, Mirati Therapeutics
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Short Report: Bearish views reach record high on Silvergate, Mirati Therapeutics

FTX fallout keeps Silvergate Capital in focus as bears press on; Mirati Therapeutics shorts shrug FDA breakthrough designation on adagrasib

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 up 0.7%, the Russell 2000 index up 0.7%, the Russell 1000 Growth ETF (IWF) was up 0.2%, and the Russell 1000 Value ETF (IWD) was up 1.1% in the period range.

SHORT INTEREST GAINERS

  • As regulators and lawmakers continue to investigate its role in the FTX-Alameda dealings, short-sellers are keeping Silvergate Capital (SI) firmly in their sights. Estimated short interest in the stock has gone up again this week, rising from 43.1% to a new record high of 57.2% and now sits near the top of our screen in terms of bearish expression as a percentage of free float. While shares were flat in the four-day period covered through Thursday, Silvergate is down nearly 90% for the year.
  • Ortex-reported short interest in Mirati Therapeutics (MRTX) has spiked from 17.5% to a record-high 23.1% this week while days to cover on the stock doubled to 1.6 – a one-month high. Shares were up slightly last week when FDA granted breakthrough therapy designation for its adagrasib in patients with advanced colorectal cancer, though the stock remains down sharply since announcing results from studies evaluating the drug in NSCLC. Mirati Therapeutics is down 1.8% in the four-day period covered and off by 54% from November high.
  • Estimated short interest in Cinemark (CNK) was up from 19.2% to 22.0%, a three-week high, with days to cover little changed at 6.1. The stock was down 7.7% in the four-day period covered, though shares are off by 37% from the four-month highs seen just earlier this month spurred by the news of Amazon planned investment in movies targeted for theatrical release. Analysts continue to point to the lag in box office recovery however, with the most recent note from Benchmark suggesting that performance of the highly anticipated Avatar sequel was disappointing.
  • Ortex-reported short interest as a percentage of free float for Wayfair (W) was also a notable mover this week, rising from 27.3% to a three-month high of 30.8%. The news on the name has been sparse and the stock has traded sideways since mid-October, though investors continue to fret over Wayfair’s ability to grow customers in a recessionary environment and by the consumers’ shift in their spending focus away from home goods in the pandemic aftermath. Shares of Wayfair were down 3.2% in the four-day period covered and are off by over 80% in 2022.

 SHORT INTEREST DECLINERS

  • Big Five Sporting Goods (BGFV) has vastly underperformed its closes peer Dick’s Sporting (DKS) and most of the Specialty Retail names as the stock has fallen 36% from its mid-November highs. Bearish interest in the name continues to decline however, with estimated shorts as a percentage of free float down another three percentage points to 19.4% – the lowest level since mid-2021. In the four-day-period covered this week, Big Five Sporting Goods was down 2%, though shares are off by more than 50% in 2022.
  • Estimated short interest in Janux Therapeutics (JANX) fell from 17.4% to a one-year low of 14.8% this week as shares got a boost from the announcement that the company submitted the investigational new drug application for JANX008 in its intended bid to treat solid tumors to the FDA. The stock was down 33% for the year but rose 12% in the four-day period covered.

Keywords: Short selling, short interest, days to cover, securities, lending, utilization, sentiment analysis, Silvergate Capital, Mirati Therapeutics, Wayfair, Cinemark, Big Five Sport Goods, Janux Therapeutics

Published first on TheFly

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