Short Report: TeraWulf short interest at record high despite stock strength

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 1.6%, the Nasdaq Composite was up 1.6%, the Russell 2000 index was up 2.0%, the Russell 2000 Growth ETF (IWO) was up 1.8%, and the Russell 2000 Value ETF (IWN) was up 1.7% in the five-day trading session range through October 2.

SHORT INTEREST GAINERS

• Ortex-reported short interest in TeraWulf (WULF) troughed at a two-month low of 29.5% in the first week of September as bears covered their shorts amid surging stock price since mid-August, when the company secured a ground lease to pursue HPC expansion at its Cayuga site. Shorts have since reconsidered their cautious stance however, re-accumulating their exposure to now record-high levels. This week, short positioning as a percentage of free float rose from 35.3% to 38.9%, days-to-cover jumped from 1.9 to 2.5, while the stock price gained 4.6% in the five-day period covered through Thursday, with another 3% added on Friday. Year-to-date, TeraWulf shares are now up 110%.
• Ortex-reported short interest in LENZ Therapeutics (LENZ) has tracked the steady uptrend in the stock price this year, and this week, shorts as a percentage of free float change was especially pronounced – rising from 36.4% to an all-time high of 39.5%. Likewise, the stock price soared 21% in the five-day period through Thursday, with the added tailwinds coming from the company announcement that its VIZZ aceclidine ophthalmic solution – the “first and only FDA-approved aceclidine-based eye drop for the treatment of presbyopia in adults” – is now available. Year-to-date, shares of LENZ are now up 69%.
• Ortex-reported short interest in RH (RH) had slipped to a five-month low around 19% on September 17, though the recent decline in the stock price has since emboldened the bears. This week, shorts as a percentage of free float on RH rose from 19.3% to 20.6%, while days-to-cover on the name was up even steeper from 1.9 to 2.7 amid normalizing trading volume in the wake of the company’s Q2 results on September 12. In the five-day period covered, shares of RH were down 4.9%, and while the stock is up 69% from tariff-induced April lows, year-to-date, RH is still down by 47%.

SHORT INTEREST DECLINERS

• Ortex-reported short interest in Quantum Computing (QUBT) hit a two-month high of 26.7% late last week as traders boosted their bets that valuations are catching up to the capital-intensive high-performance-computing/AI theme in general and the company’s quantum computing space in particular.  This week, however, a renewed surge to record highs in the stock price on near-record trading volume this week has dissuaded market participants from attempting to pick the top just yet.  In the five-day period through Thursday, shorts as a percentage of free float fell from 26.6% to 22.2%, days-to-cover remained unchanged at 3.1, while the stock price gained 3% and then added a whopping 23% on Friday with no clear catalyst. Year-to-date, Quantum Computing is now up by 49%.
• Ortex-reported short interest in Rocket Companies (RKT) hit a two-month high of 56.5% late last week, though with the stock now falling for three consecutive weeks, bears are also taking some profits. This week, short positioning as a percentage of free float pulled back to 50% while days-to-cover retreated from 8.5 to 6.0 as trading volumes spiked. The company also announced that, having completed its acquisition of Mr. Cooper, it is filing a common stock offering, driving shares lower. In the five-day period covered, Rocket Companies was down 4%, though year-to-date, the stock is still up a sizable 58%.