Market Movers: Short Interest Trends to Watch
The latest short interest data is out, and it’s time to take a closer look at the trends shaping the market. Using data from our partner Ortex.com, we’re screening for the biggest changes in short interest as a percentage of free float and days-to-cover ratios. This week, we’re focusing on some of the most widely followed high-short-float stocks, as well as some of the more volatile and heavier-traded names.
A Turbulent Week for Spirit Airlines
Spirit Airlines (SAVE) has seen its estimated short interest continue its year-long upward climb, reaching a new all-time high this week. The stock has been particularly volatile over the past couple of weeks, sinking nearly 40% following a Wall Street Journal report that the company was in discussions over the terms of a bankruptcy filing. However, shares bounced higher by 30% after-hours on Friday after the company reached a deal with creditors, extending the deadline for a debt restructuring to December.
Short Interest on the Rise
Westrock Coffee (WEST) has seen its short interest consolidate a 24 percentage point ascend to 73% from early August through mid-September. However, bearish positioning has once again been on the rise over the past two weeks, with shorts as a percentage of free float up just over four points from 66.6% to 70.8%. CompoSecure (CMPO) has also seen a significant increase in short interest, jumping from 45.1% to 63.1% – a record high.
A Decline in Short Interest
MicroStrategy (MSTR) has seen its short interest decline, slipping from 17% to about 16% and days-to-cover on the name moved lower from 3.3 to 2.7. The stock was up 5.5% in the five-day period covered through Thursday, and inclusive of Friday’s 12% spike supported by this week’s breakout in bitcoin price to late-July highs, MicroStrategy has now gained 89% from September 6 lows.
Market Performance
The S&P 500 index was up 1.0%, the Nasdaq Composite was up 0.5%, the Russell 2000 index was up 4.2%, the Russell 2000 Growth ETF (IWO) was up 4.0%, and the Russell 2000 Value ETF (IWN) up 4.4% in the five-day trading session range through October 17.
What’s Next?
As the market continues to fluctuate, it’s essential to stay informed about the latest trends and changes in short interest. Keep an eye on these stocks and stay ahead of the curve with our real-time, market-moving breaking financial news.
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