SHORT INTEREST GAINERS
- Bed Bath and Beyond (BBBY), teetering on the brink of bankruptcy earlier this month, received a capital injection lifeline of up to $1B in exchange for promising to pursue an aggressive turnaround plan that includes closures of as many as 400 store locations over the long term. Based on the company’s track record, on top of the challenging backdrop for Specialty Retail, investors remain skeptical that the company will be successful. Estimated short interest on the name was up five percentage points – the largest increase in our screen – to reach 56.2%, which is roughly a 13-month high. Days to cover was up 10 basis points at 1.6, the highest level since the company announced its capital raise on February 6th. The stock was also down about 17% in the four-day period covered, with prices now below the levels seen when Bed Bath and Beyond was at bankruptcy’s doorstep.
- Estimated short interest in Lemonade (LMND) had sunk toward the bottom end of a narrow two-month range around 23% last week, but bearish bets on the name have picked up this week heading into the company’s Q4 results that were out on Wednesday. While Lemonade outperformed with a smaller than expected loss, Ortex-reported shorts were up to 25.4%, a five-month high. The stock was helped by the company’s update and ended the four-day period covered through Thursday down just 2%, though shares were off by another 6% on Friday amid market rout, ending the week below its pre-earnings levels.
- Ortex-reported short interest in Luminar (LAZR) rose from 29.6% to a record-high of 31.7% this week, extending its month-long upward thrust off from the 23% low. The estimated short position is on the rise despite the recent jump in the stock price driven by Luminar’s announcement of an expanded partnership with Mercedes-Benz to enhance the automaker’s automated driving capabilities of its next generation vehicles. The stock ended the week up 12.5% over the four-day period covered through Thursday, adding another whopping 12% on Friday in spite of the broadly negative market sentiment.
SHORT INTEREST DECLINERS
- Estimated short interest in SkyWater Technology (SKYT) has been steadily receding for about three months, but this week, bears threw in the towel in greater numbers. Ortex-reported short position as a percentage of free float fell over five percentage points to just 8.6%, effectively ending our monitoring of the name in this capacity. Despite the downturn in broader markets, SkyWater shares have had decent returns in February after a solid 52% gain in January. The stock was also up over 20% the day after its better than expected Q4 results early last week. While shares corrected by about 10% in the four-day period covered through Thursday, SkyWater Technology remains up 86% year-to-date.
