Short Report: Tempus AI short interest reaches record high

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 0.4%, the Nasdaq Composite was down 0.4%, the Russell 2000 index was down 2.3%, the Russell 2000 Growth ETF (IWO) was down 2.4%, and the Russell 2000 Value ETF (IWN) was down 2.1% in the five-day trading session range through September 25.

SHORT INTEREST GAINERS

• Ortex-reported short interest in Tempus AI (TEM) has been on a steady uptrend since the company went public just over a year ago, and this week, bearish positioning has hit a zenith of 25.7% – up four percentage points from last week. The increase in bearish expression also coincides with an overall rise in volatility and skepticism over AI-themed names as of late – just prior to the jump in short interest, the stock hit a record high price point on Monday, but by Thursday, shares of the AI-enabled precision medicine solutions provider were 19% down from those highs. Overall, Tempus AI lost 11% in the five-day period covered through Thursday, even though the stock remains up by 132% year-to-date.
• Ortex-reported short interest in Vital Farms (VITL) rose from 24.7% to 28.8% this week, with bears showing greater willingness to build positions as shares crack under pressure. The stock of the U.S. leader in pasture-raised eggs output soared 17% the day after the company reported blowout Q2 results last month, and the momentum build toward a 42% gain over the next three weeks. Over the past month however, the stock is down 23% from the peak, and this week, Vital Farms saw an especially pronounced retreat of 11.5% over the five-day period covered.
• Ortex-reported short interest in Designer Brands (DBI) had fallen to 20-month lows of around 20% just last week as the stock has nearly doubled in price from early August through the first half of September, though the recent correction spurred an increase in bearish activity. Shorts as a percentage of free float on Designer Brands jumped from about 21% all the way up to 32% while days-to-cover also bounced from 5.4 to 7.1. Meanwhile, the stock price has come in about 14% in the five-day period covered and has now fallen 25% from this month’s highs. Year-to-date, shares of Designer Brands are also down 29%.
• Ortex-reported short interest in Kura Sushi (KRUS) peaked near 31% in mid-June and had retreated to a five-month low of 23% as of last week, but bears are using this week’s sell-off to add to positions. Shorts as a percentage of free float in the five-day period through Thursday jumped from 21.6% to 26% amid heavy selling with no major catalysts outside of a broader market turn, as days-to-cover actually fell from 5.7 to 4.5 due to strong volume. With this week’s 20% sell-off, shares of Kura Sushi are now down 32% year-to-date.

SHORT INTEREST DECLINERS

• Ortex-reported short interest in NuScale Power (SMR) is down for the second consecutive week after reaching record high around 33% on September 11. This week, shorts as a percentage of free float on the name fell from 30.6% to 26.2%, with days to cover also slipping from 4.2 to 3.2. Modular nuclear reactor development has been a popular theme as investors have been cheering the nuclear deregulation push by the Trump administration, and NuScale Power, along with Oklo (OKLO), have been riding the momentum for several months – NuScale shares had tripled and Oklo more than quadrupled since the second half of May, when the White House issued executive orders designed to “preserve existing nuclear plants and usher in the deployment of next generation nuclear”. This week however, the nuclear theme saw a bit of a “meltdown”, as research notes out of Goldman Sachs and Seaport questioned Oklo’s capital intensity and valuations. In the five-day period covered, NuScale Power was down 1%, even though year-to-date, the stock remains higher by 112%. Likewise, Oklo shares are still up 420% year-to-date, even though the stock is now 24% off its record highs.