Short Report: Bears undeterred by liftoff in Virgin Galactic shares

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 Russell 2000 index was down 2.2%, the Russell 2000 Growth ETF (IWO) was down 1.7%, and the Russell 2000 Value ETF (IWN) was down 2.8% in the four-day trading session range.

SHORT INTEREST GAINERS

• Estimated short interest on Virgin Galactic (SPCE) had been trending lower from May-end high of 24.6% to 22.3% as of late last week, though with the pop in the stock price following the announcement on June 15 that the company is gearing up for the start of commercial spaceflight service, short-sellers saw an opportunity to step in again. Short position as a percentage of free float was up to 25.1% from 22.3% – the highest level in about two months. After Virgin Galactic’s gain of 31% in the four-day period covered, the strategy may be paying off early as the stock fell 18% on Friday following the company’s announcement of an equity raise.
• Ortex-reported short interest in Enliven Therapeutics (ELVN) has been on a gradual upward trajectory from about 36% to just above 40% over the past month, but this week, the short position has spiked from 40.8% all the way to 60.3%. Days to cover on the stock has also gapped notably, rising from 5.2 to 9.9. Both measures of bearish expression are record highs. The stock was up 14% in the four-day period covered, though shares fell about 5% on Friday and another 3% afterhours following the company’s $400M mixed shelf offering, which is nearly half of its market cap.
• Ortex-reported short interest on Fisker (FSR) slipped to its lowest level of the year on May 29 at 33.3% but has since been building even as the stock price heads south. In the four-day period covered, short interest as a percentage of free float rose from 34.5% to 35.8%, matching a one-month high. Concurrently, the stock was down 13% through Thursday, with another 2.9% decline on Friday. Trading volumes were also elevated, reaching the highest level seen since June 7th, when the stock spiked on the announcement that the company will start U.S. deliveries of Fisker Ocean SUV later this month.

SHORT INTEREST DECLINERS

• Estimated short interest on Mobileye (MBLY) peaked at 2023 highs above 26% in the first week of June, but bears have been squaring their bets while the stock price turned lower. This week, the short position has been pared down all the way to 12.1% from 20.8% – the lowest level since early January of this year – with the stock slipping nearly 6% in the four-day period covered. The stock has approached $50 per share price point on three separate occasions this year, failing to break that level each time however.
• Ortex-reported short interest on Big Lots (BIG) hit its highest level of the year at 42.3% late last week, but with the stock trading off its lows and volumes on the rise this month, the short position has been dialed back. Short position as a percentage of free float was down to 37.9% this week, slipping in all four trading sessions. The stock was also down 8.3% through Thursday, though shares bounced by over 10% on Friday despite the broader market selloff.