Grindr Short Interest Rises to 31.0%
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 1.3%, the Russell 2000 index was up 1.8%, the Russell 2000 Growth ETFwas up 2.3%, and the Russell 2000 Value ETFwas up 1.3% in the five-day trading session range through December 4.SHORT INTEREST GAINERSOrtex-reported short interest on Grindrhad collapsed from levels over 100% in October to a trough of about 26% in late November, but with the company's announcement that a take-private proposal from large shareholders Ray Zage and James Lu at $18.00 per share in cash has failed to materialize, bears are rebuilding their exposure. This week, shorts as a percentage of free float jumped from 26.2% to 31.0% while bid-to-cover on the name rose from 3.4 to 4.0 – both marking three-week highs. The stock was up 5.3% in the five-day period covered and has just about closed the gap after the news of a failed deal, though shares are still down 24% year-to-date and off by 46% from early June peak.Ortex-reported short interest on Clean Sparktroughed at 2025 lows of 16.5% in the first week of October, but while the stock reached the year's high just a week later and has since lost nearly half of its value, bears are undeterred and have magnified their positioning. This week, shorts as a percentage of free float on the stock were up for the seventh consecutive week, rising from 32.6% to 34.3% - a four-month high. Exchange-reported short interest has also seen a jump as of the first half of November – spiking from 21% to about 28%. The stock, meanwhile, gained 11.8% in the five-day period covered and has tallied a 51% year-to-date gain, though it is down 36% from October's peak as of Thursday-close, with another 9% in losses coming on Friday.Ortex-reported short interest on Lucky Strike Entertainmenthad fallen from around 70% in early February to a multi-year low of 18% as of the final week of November as the bears thesis materialized to the tune of a 45% downswing over the course of that period. With the stock finding some support over the recent days and no discernable catalysts, bears are selling into strength. This week, shorts as a percentage of free float nudged from 18.3% to 19.9% and days to cover rose from 8.7 to 9.4 as the stock gained 10%. Overall, however, shares of Lucky Strike are still down 15% year-to-date as of Thursday close.SHORT INTEREST DECLINERSOrtex-reported short interest on Core Scientificreached a record high of 34% earlier last week as the stock slipped to a two-and-a-half month low, though with shares finding support and subsequently bouncing 5.5% over the five-day period through Thursday, traders are pondering whether the plunge in the crypto ecosystem may have run its course. Shorts as a percentage of free float on Core Scientific has pulled back from 33.4% to 29.9% this week while 3-month day-to-cover on the name has held steady around 4.0, reflecting the overall pickup in relative trading volume for the majority of October and November.Ortex-reported short interest in HighPeak Enegyhad declined to 2025-lows below 18% in mid-October, then bounced back to 27% through mid-November, but has now fallen for two consecutive weeks. This week, shorts as a percentage of free float compressed from 23.0% to 19.7%, while days-to-cover slipped from 7.3 to 6.3. The stock was down 2.9% in the five-day period through Thursday, though 2025 overall has not been kind to the energy stock exposed to pressure in the oil and natural gas patch – year-to-date, HighPeak is now down 60%, with 8% of losses also coming on Friday.
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Grindr Majority Owner Sells 1.45 Million Shares
- Transaction Overview: From February 4 to 6, 2026, Grindr's majority owner James Lu sold 1.45 million shares in open-market transactions valued at $14.6 million, indicating a potential loss of confidence in the company's future prospects.
- Ownership Changes: Post-sale, Lu's direct ownership is reduced to just 4,455 shares, while indirect holdings drop to 18,432,101 shares, suggesting a significant decrease in his control over the company, which may impact investor sentiment.
- Market Reaction and Valuation: With a current share price of $10.08 and a market cap of $1.86 billion, Grindr has seen a 45.54% decline in stock price over the past year, reflecting market concerns about the company's growth potential, especially following the failed buyout negotiations.
- New Service Launch Plans: Grindr is piloting a new subscription service called “Edge,” which aims to offer personalized matches and insights, although its proposed price point of $499 raises market skepticism about user acceptance given that the highest current subscription is only $44.99.
Grindr Majority Shareholder Sells 1.45 Million Shares
- Shareholder Sell-off: Grindr's majority shareholder James Lu sold 1.45 million shares between February 4 and 6, 2026, for approximately $14.6 million at an average price of $10.07 per share, which may negatively impact market confidence in the company's future prospects.
- Investigation into Termination: The company is currently under investigation regarding whether the board breached its fiduciary duties following the termination of buyout negotiations, which could lead to a reassessment of its governance structure and affect shareholder trust.
- New Subscription Pilot: Grindr is piloting a new subscription service called “Edge,” offering personalized matches and insights at a proposed price of up to $499, significantly higher than its current highest subscription of $44.99, raising questions about market acceptance and user response.
- Investor Caution: Analysts have noted that Grindr did not make the list of top investment stocks, indicating concerns about its growth potential, prompting investors to carefully consider its investment value.
Analysts Upgrade Earnings Outlook for Communication Services, Angel Studios and Others Rated A+
- Earnings Upgrades: As earnings season approaches, analysts have positively revised earnings expectations for communication services companies, with Angel Studios (ANGX) receiving an A+ EPS Revision Grade, indicating growing market confidence in its near-term performance.
- Strong Small-Cap Performance: EverQuote (EVER), Grindr (GRND), and ZoomInfo Technologies (GTM) also achieved A+ EPS Revision Grades, suggesting that these mid- and small-cap communication services firms possess robust growth potential, likely attracting increased investor interest.
- Increased Market Confidence: IHS Holding (IHS), JOYY (JOYY), and Manchester United (MANU) also received A+ EPS Revision Grades, reflecting analysts' optimistic outlook on their profitability and market performance, which may drive their stock prices higher.
- Positive Industry Outlook: Turkcell Iletisim Hizmetleri (TKC), Uniti Group (UNIT), and Anterix (ATEX) also excelled in EPS Revision Grades, highlighting the growth potential within the communication services sector, presenting investment opportunities for investors to consider.
Johnson Fistel Investigates Grindr Board for Potential Fiduciary Breaches
- Board Investigation: Johnson Fistel is investigating whether Grindr Inc.'s Board of Directors breached fiduciary duties by terminating negotiations with the controlling stockholder, particularly concerning minority shareholders' rights.
- Shareholder Rights Review: The investigation will assess if the Board's decisions impacted shareholder rights, including the balance of control within the company and the treatment of non-controlling investors, potentially leading to decreased shareholder trust.
- Potential Legal Consequences: Should the investigation reveal board misconduct, it could prompt shareholder lawsuits, affecting Grindr's stock price and market reputation while increasing the company's legal risks.
- Investor Participation: Johnson Fistel encourages Grindr shareholders to join the investigation, highlighting concerns over corporate governance transparency, which may influence future investor confidence.
Grindr Appoints Tristan Pineiro as CMO and Zac Katz as Chief Legal Officer
- Brand Transformation Leadership: Tristan Pineiro appointed as Chief Marketing Officer has successfully repositioned Grindr's brand through the Global Gayborhood platform, enhancing cultural relevance and expanding advertiser engagement, thereby driving brand recognition in global markets.
- Legal Function Expansion: Zac Katz appointed as Chief Legal Officer will oversee legal, privacy, and government affairs, supporting Grindr's responsibilities as a public company while driving growth in the Grindr for Equality social impact initiative, enhancing the company's influence in social responsibility.
- Strategic Growth Engine: Under Pineiro's leadership, marketing and communications have become a strategic growth lever for Grindr, building a global content and experiences engine that translates product innovation into user trust and engagement, significantly boosting user participation.
- Strengthened Leadership Team: CEO George Arison emphasized the critical roles these leaders play in advancing Grindr's ambitious vision, indicating that the company's influence and responsibility within the global LGBTQ+ community are continuously growing.
Grindr Director Zage Acquires 155,000 Shares for $2.1 Million
- Share Acquisition: Director George Raymond Zage III acquired a total of 155,000 shares through multiple open-market purchases on December 3 and 4, 2025, with an aggregate value of approximately $2.1 million, raising his direct holdings to 8,063,283 shares, reflecting confidence in the company's future prospects.
- Holding Proportion Analysis: Post-transaction, Zage's direct holding ratio stands at 92.2%, indicating substantial capacity for future trades, consistent with a net-buy trend over the past year, which may further bolster market confidence in Grindr.
- Market Performance Comparison: The average purchase price for this acquisition was $13.49 per share, while Grindr's stock price as of December 4, 2025, had declined by 11.5% over the past year, showcasing Zage's strategy of buying during market downturns, potentially setting the stage for future rebounds.
- Investor Impact: Zage and his partner James Lu owned 64% of the company, and despite withdrawing a $3.5 billion bid to take Grindr private, their decision to increase shareholdings signals confidence in the company's public market presence, likely attracting more investor interest.
Grindr Majority Owner Sells 1.45 Million Shares
- Transaction Overview: From February 4 to 6, 2026, Grindr's majority owner James Lu sold 1.45 million shares in open-market transactions valued at $14.6 million, indicating a potential loss of confidence in the company's future prospects.
- Ownership Changes: Post-sale, Lu's direct ownership is reduced to just 4,455 shares, while indirect holdings drop to 18,432,101 shares, suggesting a significant decrease in his control over the company, which may impact investor sentiment.
- Market Reaction and Valuation: With a current share price of $10.08 and a market cap of $1.86 billion, Grindr has seen a 45.54% decline in stock price over the past year, reflecting market concerns about the company's growth potential, especially following the failed buyout negotiations.
- New Service Launch Plans: Grindr is piloting a new subscription service called “Edge,” which aims to offer personalized matches and insights, although its proposed price point of $499 raises market skepticism about user acceptance given that the highest current subscription is only $44.99.
Grindr Majority Shareholder Sells 1.45 Million Shares
- Shareholder Sell-off: Grindr's majority shareholder James Lu sold 1.45 million shares between February 4 and 6, 2026, for approximately $14.6 million at an average price of $10.07 per share, which may negatively impact market confidence in the company's future prospects.
- Investigation into Termination: The company is currently under investigation regarding whether the board breached its fiduciary duties following the termination of buyout negotiations, which could lead to a reassessment of its governance structure and affect shareholder trust.
- New Subscription Pilot: Grindr is piloting a new subscription service called “Edge,” offering personalized matches and insights at a proposed price of up to $499, significantly higher than its current highest subscription of $44.99, raising questions about market acceptance and user response.
- Investor Caution: Analysts have noted that Grindr did not make the list of top investment stocks, indicating concerns about its growth potential, prompting investors to carefully consider its investment value.
Analysts Upgrade Earnings Outlook for Communication Services, Angel Studios and Others Rated A+
- Earnings Upgrades: As earnings season approaches, analysts have positively revised earnings expectations for communication services companies, with Angel Studios (ANGX) receiving an A+ EPS Revision Grade, indicating growing market confidence in its near-term performance.
- Strong Small-Cap Performance: EverQuote (EVER), Grindr (GRND), and ZoomInfo Technologies (GTM) also achieved A+ EPS Revision Grades, suggesting that these mid- and small-cap communication services firms possess robust growth potential, likely attracting increased investor interest.
- Increased Market Confidence: IHS Holding (IHS), JOYY (JOYY), and Manchester United (MANU) also received A+ EPS Revision Grades, reflecting analysts' optimistic outlook on their profitability and market performance, which may drive their stock prices higher.
- Positive Industry Outlook: Turkcell Iletisim Hizmetleri (TKC), Uniti Group (UNIT), and Anterix (ATEX) also excelled in EPS Revision Grades, highlighting the growth potential within the communication services sector, presenting investment opportunities for investors to consider.
Johnson Fistel Investigates Grindr Board for Potential Fiduciary Breaches
- Board Investigation: Johnson Fistel is investigating whether Grindr Inc.'s Board of Directors breached fiduciary duties by terminating negotiations with the controlling stockholder, particularly concerning minority shareholders' rights.
- Shareholder Rights Review: The investigation will assess if the Board's decisions impacted shareholder rights, including the balance of control within the company and the treatment of non-controlling investors, potentially leading to decreased shareholder trust.
- Potential Legal Consequences: Should the investigation reveal board misconduct, it could prompt shareholder lawsuits, affecting Grindr's stock price and market reputation while increasing the company's legal risks.
- Investor Participation: Johnson Fistel encourages Grindr shareholders to join the investigation, highlighting concerns over corporate governance transparency, which may influence future investor confidence.
Grindr Appoints Tristan Pineiro as CMO and Zac Katz as Chief Legal Officer
- Brand Transformation Leadership: Tristan Pineiro appointed as Chief Marketing Officer has successfully repositioned Grindr's brand through the Global Gayborhood platform, enhancing cultural relevance and expanding advertiser engagement, thereby driving brand recognition in global markets.
- Legal Function Expansion: Zac Katz appointed as Chief Legal Officer will oversee legal, privacy, and government affairs, supporting Grindr's responsibilities as a public company while driving growth in the Grindr for Equality social impact initiative, enhancing the company's influence in social responsibility.
- Strategic Growth Engine: Under Pineiro's leadership, marketing and communications have become a strategic growth lever for Grindr, building a global content and experiences engine that translates product innovation into user trust and engagement, significantly boosting user participation.
- Strengthened Leadership Team: CEO George Arison emphasized the critical roles these leaders play in advancing Grindr's ambitious vision, indicating that the company's influence and responsibility within the global LGBTQ+ community are continuously growing.
Grindr Director Zage Acquires 155,000 Shares for $2.1 Million
- Share Acquisition: Director George Raymond Zage III acquired a total of 155,000 shares through multiple open-market purchases on December 3 and 4, 2025, with an aggregate value of approximately $2.1 million, raising his direct holdings to 8,063,283 shares, reflecting confidence in the company's future prospects.
- Holding Proportion Analysis: Post-transaction, Zage's direct holding ratio stands at 92.2%, indicating substantial capacity for future trades, consistent with a net-buy trend over the past year, which may further bolster market confidence in Grindr.
- Market Performance Comparison: The average purchase price for this acquisition was $13.49 per share, while Grindr's stock price as of December 4, 2025, had declined by 11.5% over the past year, showcasing Zage's strategy of buying during market downturns, potentially setting the stage for future rebounds.
- Investor Impact: Zage and his partner James Lu owned 64% of the company, and despite withdrawing a $3.5 billion bid to take Grindr private, their decision to increase shareholdings signals confidence in the company's public market presence, likely attracting more investor interest.
