Lenz Therapeutics Short Interest Rises to 44%
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, 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 0.7%, the Nasdaq Composite was up 0.9%, the Russell 2000 index was up 0.5%, the Russell 2000 Growth ETFwas up 0.7%, and the Russell 2000 Value ETFwas up 0.3% in the five-day trading session range through February 26.SHORT INTEREST GAINERSOrtex-reported short interest on Lenz Therapeuticstroughed at a four-month low of around 34% in the final week of December but has since tracked higher, with the momentum in bearish positioning accelerating once the stock was unable to sustain its January bounce. This week, in the five-day period covered through Thursday, shorts as a percentage of free float on the name rose from just under 40% to 44%, matching a nearly-three-month high, while days-to-cover on the name jumped from 7.9 to 8.8. The stock was up 12.2% in that time-span, though shares are still down 38% from late-January peak and down 17% year-to-date.Ortex-reported short interest on Tyra Biosciencesfell from a five-month high of 36% in mid-January all the way down below 23% last week, though this week – coinciding with a 6% jump in the stock price – bears are willing to renew their bets on the downside. Shorts as a percentage of free float rose from 22.8% to 27.5% in the five-day period covered through Thursday, while days-to-cover turned higher from 8.2 to 8.5. The stock has nearly tripled from early November lows as investors reward its oncology potential while the sell-side community heaps praise on its recent topline Phase 3 infigratinib results.Ortex-reported short interest on Dave & Busterstroughed at a three-month low of 33% about two weeks ago, with investors betting that the stock's decline of over 30% in just three weeks was overdone. With sentiment in consumer space turning more frail over the balance of February and the price action coiling around these lows, bears are seemingly willing to bet that the company's upcoming Q4 results – likely in early April – will fail to produce a positive catalyst. Shorts as a percentage of free float in the gaming/entertainment chain rose from 34.3% to a two-month high of 40.2% and days-to-cover on the name increased to 9.0 from 7.3 – a sizeable rise given the stock's steady trading volume. Shares were off by just 0.6% in the five-day period covered but traded down 5% on Friday and have now lost 9% year-to-date.SHORT INTEREST DECLINERSOrtex-reported short interest in Under Armourremains in freefall, sliding lower for the fifth consecutive week from 28.0% to 22.5% in the five-day period covered through Thursday of this week. The overzealous bears had finally capitulated in mid-January, when the stock was already up 40% from November lows as its short-interest hit a peak of 35%. Shares have since added another 32% for a total 85% gain since November, prompting the furious short-covering. Under Armour was down 1.2% this week and shares are caught in Friday's broader market and consumer sector downdraft with a slide of 3%, though the stock is still a top-performing name in Footwear/Accessories and Apparel/Manufacturing groups year-to-date with a 46% year-to-date return.Ortex-reported short interest in Redwirelooked as though its retreat had stalled in the first week of February when bearish positioning as a percentage of free float fell to four-month low of 17.6%, but after resurfacing for the balance of the month, shorts have reconsidered further exposure. This week, short interest as a percentage of free float on Redwire was down from 21.8% to 18.3%, with the stock's 11% gain justifying concerns among the bears. This week's earnings from the integrated space / defense tech company was also rewarded by traders with double-digit gains, and though shares are down over 6% heading into the weekend, Friday's late-breaking report about the possibility of a richly valued $1.7 trillion SpaceX IPO as soon as March is met positively in the space technology group.
