Short Report: Bears reduce exposure to crypto 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 down 0.7%, the Nasdaq Composite was down 0.2%, the Russell 2000 index was up 0.7%, the Russell 2000 Growth ETF (IWO) was up 0.1%, and the Russell 2000 Value ETF (IWN) was up 0.5% in the five-day trading session range through Thursday, September 28.

SHORT INTEREST GAINERS

• Estimated short interest in EVgo (EVGO), initially profiled here last week for tracking the short position being built in its peer Blink Charging (BLNK), continued to rise this week, with the increase marking its third consecutive outsized gain. Shorts as a percentage of free float were up another four percentage points to 26.5% – the highest level in six months. Likewise, the short position in Blink Charging was up by two points to 31.3% – a more modest relative change but also the highest level in eight months. In the five-day period covered, shares of EVgo were down another 9.3% and those of Blink Charging fell 2.9% in spite of the decidedly less negative sentiment in broader markets.
• Estimated short interest in Guess (GES) had slipped from its three-year high around 33% in the first week of September all the way down to 25.5% late last week as shares fell about 13% from comparable multi-year high on August 31 to this week’s one-month low. The decline in the stock price has decelerated this week however to the tune of about 2%, and the bear positioning is also replenished, with shorts as a percentage of free float on the name rising from 25.5% to 29.7%.
• Ortex-reported short interest in Vital Energy (VTLE) fell to a seven-month low of 16.8% late last week as bears took some profits following the stock’s 12% decline in the week following its production data and equity raise. As shares recover lost ground amid the ongoing strength in the energy space, bearish positions are also being rebuilt. Shorts as a percentage of free float on Vital Energy were up to 20.3% from 17.1% last Thursday, while the stock advanced 7.2% in the five-day period covered.

SHORT INTEREST DECLINERS

• Ortex-reported short interest in Marathon Digital (MARA) saw its second consecutive week of sizable decline, slipping from 25.1% to 20.6%. As disclosed last week, the short positioning on the stock has trended within a 21.5%-27.5% range over a six-month period and without much directional bias despite the more pronounced volatility in the stock and the broader cryptocurrency asset class re-emerged last week. This week, that short position as a percentage of free float has decidedly broken below the lower band of that range to the lowest level since the first half of 2022. Despite another stab above the 27,000 mark yesterday, the consolidation from last month’s freefall in bitcoin prices is also not doing much for Marathon Digital, as shares fell another 6.4% in the five-day period covered. Short positioning in some of the other crypto-exposed names is also receding: Shorts in Riot Platforms (RIOT) are down to 17.2% from 18.7%, a seven-week low. Short positioning in MicroStrategy (MSTR) is off from its 11-week high of 24.2% last week to 22.7%. Riot Platforms shares and MicroStrategy are also down 1.6% and up 0.9% respectively in the five-day period covered.