Short Report: Bears step back from Lucid following tw0-month slide

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 1.0%, the Nasdaq Composite was up 0.1%, the Russell 2000 index was down 3.5%, the Russell 2000 Growth ETF (IWO) was down 3.5%, and the Russell 2000 Value ETF (IWN) was down 3.5% in the five-day trading session range through Thursday, October 5.

SHORT INTEREST GAINERS

• Estimated short interest in ALX Oncology (ALXO) had tracked in a sideways range of 14%-18% for about five months, though this week, shorts as a percentage of free float spiked from 17.7% all the way to 26.7% – the highest level since January. Shares were also extra volatile, jumping over 50% on Tuesday after the company positive interim phase 2 data from the Aspen-06 clinical trial of Evorpacept for the treatment of gastric cancer before selling off later in the week as ALX announced a $55M equity raise. For the week, ALX Oncology shares were still up about 32% through Thursday.
• Ortex-reported short interest in AnaptysBio (ANAB) has also oscillated in the 29%-33% range for a period of about six months, though this week saw an upside breakout from 29.8% to 34.7% – also the highest level in eight months. Days to cover on the stock also jumped from 6.5 to 13.8 – a six-week high. The stock did not have any notable catalysts this week outside of Deep Track Capital disclosing a 5.1% stake, though shares ended the five-day period covered up 9.7%.
• Ortex-reported short interest on Mirati Therapeutics (MRTX) is tracking the stock price higher this week, rising from 20.8% to a two-month high of 23.9%. Shares spiked by 30% on Thursday following a Bloomberg report that Sanofi may be interested in acquiring the company, and the stock ended the week up 37.6%. With the sharp increase in trading volume however, days-to-cover on the name slipped by about 60 basis points to 4.1.

SHORT INTEREST DECLINERS

• Estimated short interest on Lucid Group (LCID) had hit a 2023 high of 27.0% early last week as the stock fell to its lowest level of the year below $5 per share. Short position as a percentage of free float has started to move lower however as buyers swooped in in defense of that level and bears got trapped in a short squeeze as the stock ended last week up 10% from that low. This week, Lucid shorts were down even more sharply, slipping from 26.6% to 24.9% – the lowest level in four weeks. The stock is still hinging on the balance around that 2023 low however as short-covering has waned this week as Lucid ended the 5-day period covered through Thursday down by about 7%.
• Ortex-reported short interest in Eagle Bulk Shipping (EGLE) was down from 22.7% to 20.4%, matching a 10-week low set two weeks ago, when the stock saw its 2023 low. This time however, the low short position on the stock corresponds with a thrust higher, as shares of Eagle Bulk were up 2.6% in the five-day period through Thursday and up about 10% from the year’s lows. Among marine shipping names, the stock is one of the worst performers year-to-date, losing about 14%.
• Estimated short interest on Viridian Therapeutics (VRDN) had tracked around 27% over the past three weeks as the stock fell about 20%, though bears are now seen pulling back exposure, with shorts as a percentage of free float falling to 23% on Thursday – the lowest level in six weeks. With trading volumes on the name ticking up this week, days-to-cover on the name was also down sharply, falling from 6.0 to 2.2. In the five-day period covered, Viridian Therapeutics shares were down about 4%.