Short Report: Bears boost exposure to EV charging names

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 2.0%, the Nasdaq Composite was down 0.3%, the Russell 2000 index was down 0.1%, the Russell 2000 Growth ETF (IWO) was up 0.1%, and the Russell 2000 Value ETF (IWN) was down 0.7% in the five-day trading session range through Thursday, January 11.

SHORT INTEREST GAINERS

• EV charging company Blink Technology (BLNK), profiled in this report last week, is joined by its peers Evgo (EVGO) and ChargePoint (CHPT) this week among names with outsized short interest increases. Shorts as a percentage of free float was up from 33.3% to 37.1% on Blink, the highest level since February 2022, up from 21.6% to 24.0% on Evgo, a six-week high, and up from 22.0% to 24.4% on Chargepoint, the highest in four weeks. Shares of all three names were also under pressure as traders continue to express doubt in the proliferation of auto electrification – a trend also reflected in Hertz (HTZ) selling some 20,000 of its EVs for internal combustion engine vehicles and Tesla (TSLA) having to cut its prices overseas. Blink was down 4.3%, Evgo was down 8.3%, ChargePoint was down 4.7%, and Tesla was down 8.4% in the five-day period covered.
• Ortex-reported short interest in B. Riley (RILY) has been climbing steadily since late December, with this week seeing an especially pronounced increase from 60.0% to 70.2% – the highest level since at least 2019. Exchange data is also seeing an upward trend in short positioning, with December-end data showing shorts at 68%, up from 58%, rising for the fourth consecutive reported period. Shares were up 4.3% in the five-day period covered through Thursday.
• Estimated short interest in Lucid Group (LCID) had declined from a 2023-high of 28.8% on December 13 to a four-month low of 23.3% by year-end, though short positioning is rising again for the second week in a row. This week, shorts as a percentage of free float on Lucid were up from 24.2% to 28.0%. The stock has traded down in every single session of the year so far, losing 16.2% in the five-day period covered through Thursday and another 5% in early trading on Friday.
• Ortex-reported short interest in C3.ai (AI) matched its three-month low of 34.1% three weeks ago, rising gradually since through this Tuesday and then accelerating to 38.9% into Thursday. This is a two-month high in the estimated short position and also within a percentage point from last year’s peak of 40%. The stock had recovered from its post-Q2 earnings decline on December 7 over the subsequent two weeks, though shares are now down 23% from the December 19th peak and also off by 1.9% in the five-day period covered.
• Estimated short interest in Bowlero (BOWL) had tracked in the 80%-85% range since mid-November, but with shares spiking to eight-month low to start the year, bears jumped in to fade the rally. Shorts as a percentage of free float rose to a record high 93.5% this week, while days-to-cover on the name jumped to 11.4 from 10.4 despite the steady trading volume. Shares have also come under pressure amid increased bearish interest, slipping 21% from January 2 high and also falling 10% in the five-day period covered.

SHORT INTEREST DECLINERS

• The boost from the dovish December 13 FOMC tilt on consumer and mortgage lending name Rocket Companies (RKT) proved to be short-lived, with the stock reversing more than half of their year-end rally. Shares are trading down 18% from December 27 peak and were also off by about 2% in the five-day period covered. Bears, meanwhile, are cautious to interpret the correction as a reversal rather than a pause. Ortex-reported shorts position as a percentage of free float collapsed from 20.8% to 15.9% – the lowest level since early 2022.