Short Report: Big Lots, Blink Charging shorts at two-month highs

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 1.2%, the Nasdaq Composite was up 1.3%, the Russell 2000 index was up 0.6%, the Russell 2000 Growth ETF (IWO) was flat, and the Russell 2000 Value ETF (IWN) was up 1.4% in the five-day trading session range through Thursday, September 14.

SHORT INTEREST GAINERS

• Ortex-reported short interest on AMC Entertainment (AMC) fell to a multi-year low just below 10% heading into the Labor Day Weekend two weeks ago, as bears finally took profit from a 70% decline in the stock price in the wake of a court-approved revised stock-conversion plan last month. This week saw some initial signs of a potential bearish refresh however as shorts as a percentage of free float rose from 11.3% to 15.7%. The stock ended the five-day period covered flat despite the initial upside thrust early on Thursday following the announcement of a completed 40M share offering that raised about $325M.
• Ortex-reported short interest in Big Lots (BIG) was flattish in the 23%-25% range throughout the stock’s 40% decline in the month of August but saw a more notable increase this week, rising from 23.0% to 28.7% – a two-month high. Days to cover on the name was up about 40 basis points from 2.6 to 3.0 as trading volume receded from its Q2 reporting date on August 29th but rose thus far in September relative to the summer months. The stock had risen about 27% on smaller than expected earnings loss when it reported but has since lost all of those gains, slipping another 8.3% in the five-day period through Thursday.
• Estimated short interest on Cutera (CUTR) hit a three-month low of just below 31% in mid-August as bears pared their bets following the company’s disappointing Q2 earnings and revenue miss on August 8th, just as the stock fell over 40% over the next three weeks. Shorts were more active this week however, rebuilding positions to the tune of about 38% of free float – up from 32.7% last Thursday and the highest level in three months. Days to cover on Cutera rose from 3.6 to 4.4 amid steady trading volume, while the stock was down only by about 1% this week through Thursday, though Friday saw a more pronounced 4% decline on higher volume.
• Estimated short interest in Blink Charging (BLNK) matched its five-month low levels of around 25% late last week but surged to 28.5% as of Thursday, approaching the highest mark in ten months at 29% seen in the first week of July. Days to cover on the stock also rose from 8.4 to 9.7 – the highest level in two months. Blink shares have been under pressure over the past month, falling 42% from their post-earnings highs on August 9th, though this week, the stock has found some footing with a 9.7% gain.

SHORT INTEREST DECLINERS

• Ortex-report short interest on Guess (GES) hit a multi-year high of 32.7% last Wednesday as bears rebuilt their positions amid the stock’s post-August 24 earnings run-up of over 25%. This week however, shorts as a position of free float slipped from 31.5% to 27.0% – the lowest level in two months. The stock received a vote of confidence this week as B. Riley initiated a Buy rating highlighting the company’s fall campaign featuring Georgina Rodriguez, the Spanish model and social influencer with 50M Instagram followers, as a potential upside catalyst, though the stock slipped just over 4% in the five-day period covered.