WisdomTree Short Interest Soars to 26%
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 0.5%, the Nasdaq Composite was up 0.3%, the Russell 2000 index was up 1.5%, the Russell 2000 Growth ETFwas up 1.7%, and the Russell 2000 Value ETFwas up 1.2% in the five-day trading session range through February 12.SHORT INTEREST GAINERSOrtex-reported short interest on WisdomTreesaw a four-month low of about 17% in the first week of December and remained within a 17%-19% band up until this week before spiking as high as 26% - a record high – with days to cover also rising modestly to 10.3 from 9.6. Similarly, the official exchange-reported data on the stock as of January-end saw shorts as a percentage of free float having already reached its own record high of nearly 23%. The stock is up 5.4% in the five-day period covered, though year-to-date, shares are up an impressive 34% - the highest return in the Asset Manager group - building the case for a correction.Ortex-reported short interest on Surgery Partnershas been on a gradual uptrend since October low around 18%, though this week, bearish positioning increase became much more pronounced. Shorts as a percentage of free float on the name jumped from 27.4% to 32.4% - the highest level since mid-July – as bears noted the strong 18% rebound in the stock from Monday's multi-month lows. For the week, Surgery Partners was up 15%, and year-to-date, the stock is now flat.Ortex-reported short interest in Upstartwas up every session but one from the five- month lows around 24% on February 2, rising to 27.8%. Bears are pressing their bets, with the stock deepening its selloff since reporting a disappointing Q4 earnings report on Tuesday. Shares are now at the lowest level since mid-2024, having fallen 13% in the five-day period covered through Thursday and also down 42% from early-January highs. Notably, Upstart saw some modest strength of about 2% on Friday as the stock received a valuation-driven upgrade from Goldman Sachs and as the Credit Services group re-rated after a brutal February selloff.Ortex-reported short interest on Concentrixis on the rise even as the stock has come under extreme pressure over the course of two consecutive days this week. Shorts as a percentage of free float in Concentrix had been trending higher since late February, though this week, the increased bearish positioning tripped the radar with an increase of over two percentage points, rising from 22.8% to 25.2% - the highest level since late October. For the week, the IT Solutions name was down 19%, and year-to-date, the stock is now down 27%, though this week's all-time lows in share are hardly proving to be a deterrent among the shorts.SHORT INTEREST DECLINERSShares of Under Armourhad been in a rut since late 2024, and 2025 was particularly unkind to the athletic apparel maker as its stock fell about 40%. 2026 has started off strong for the company however, forcing some notable large scale short-covering. This week, shorts as a percentage of free float in Under Armour fell from 32.8% all the way to 26% - the lowest level since mid-November. Days-to-cover on the name also slipped from 5.9 to a three-month low of 4.9. While the stock was already up over 30% heading into earnings last Friday, a much better than expected set of Q3 results along with the management's guidance raise catalyzed the rebound even further. Under Armour was up 12% in the five-day period through Thursday and has now gained over 44% year-to-date.
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Surge in Options Trading Volume for Hertz and WisdomTree
- Hertz Options Volume: Hertz Global Holdings Inc (HTZ) has seen an options trading volume of 50,202 contracts today, representing approximately 5 million shares, which accounts for 83.4% of its average daily trading volume of 6 million shares over the past month, indicating strong market interest in its stock.
- High-Frequency Trading Insight: Within HTZ, the $3 strike put option expiring on June 16, 2028, has recorded a trading volume of 8,010 contracts today, equating to about 801,000 shares, suggesting an increased investor expectation for a decline in future stock prices.
- WisdomTree Options Activity: WisdomTree Inc (WT) has reported an options trading volume of 24,315 contracts today, representing approximately 2.4 million shares, which is 81.6% of its average daily trading volume of 3 million shares over the past month, reflecting sustained investor interest in its stock.
- Bullish Call Options Trend: For WT, the $15 strike call option expiring on September 18, 2026, has seen a trading volume of 12,041 contracts today, representing about 1.2 million shares, indicating a bullish sentiment in the market regarding WT's future price increase.
Victory Capital Withdraws Bid for Janus Henderson Amid Market Dynamics
- Acquisition Dynamics: Victory Capital's withdrawal from the bid for Janus Henderson has led to its acquisition by General Catalyst and Trian, indicating a critical price discovery moment in the asset management industry, with the deal priced at a modest 11.6x forward earnings estimates.
- Fee Pressure: Asset management fees are trending lower, with ETFs providing a compelling low-cost alternative for many investors; however, the bidding war for Janus Henderson suggests that some asset management firms may be undervalued, capturing market attention.
- Invesco's Market Position: As a heavyweight in the industry, Invesco manages $2.26 trillion in assets, with its QQQ Trust essentially acting as a money-printing machine, and its current trading price is significantly below what a private equity firm would pay to build the business from scratch, highlighting its strong competitive moat.
- Options Trading Strategy: By structuring options trades to offset the dividend one would forgo by not purchasing the stock, investors can effectively acquire IVZ shares at about a 9% discount if the stock falls below $22, while also positioning for a maximum payout of $2 if the stock benefits from the JHG deal, showcasing a flexible investment strategy.
WisdomTree Prices $603.75M Convertible Notes Offering Due 2031
- Convertible Notes Offering: WisdomTree successfully priced a $603.75 million convertible notes offering, including a full $78.75 million option exercised by initial purchasers, with an interest rate of 4.50% and a maturity date of October 1, 2031, expected to close on March 30, 2026, generating approximately $591.2 million in net proceeds.
- Attractive Conversion Terms: The notes have a conversion price of $21.58 per share, representing a roughly 60% premium over the last closing price of $13.49, which is expected to attract investors to convert their notes as the stock price appreciates, thereby enhancing the company's capital structure.
- Planned Use of Proceeds: WisdomTree intends to allocate about $200 million for the acquisition of Atlantic House, approximately $302.7 million to exchange existing 2029 convertible notes, with the remaining proceeds directed towards general corporate purposes, including debt repayment, reflecting the company's strategic intent to expand and optimize its capital structure.
- Debt Exchange Transactions Impact: Concurrently, the company reached agreements with noteholders to exchange existing debt, which is expected to result in a one-time loss of about $105 million; while this will impact financial performance in the short term, it is anticipated to alleviate future interest burdens in the long run.
WisdomTree Prices $603.75 Million Convertible Senior Notes Offering
- Financing Size: WisdomTree announced the pricing of $525 million in convertible senior notes with an additional $78.75 million purchase option, expected to settle on March 30, 2026, resulting in approximately $591.2 million in net proceeds intended for acquisitions and debt exchanges.
- Acquisition Funding: The company plans to allocate about $200 million of the net proceeds to finance the acquisition of Atlantic House Holdings, thereby strengthening its market position in financial innovation, while using remaining funds for general corporate purposes, including debt repayment.
- Notes Terms: The notes mature on October 1, 2031, with an interest rate of 4.50% and a conversion price of $21.58 per share, reflecting a conversion premium of approximately 60%, indicating the company's confidence in future stock price appreciation.
- Market Impact: WisdomTree anticipates recognizing a one-time loss of approximately $105 million from the notes exchange transactions, and holders of the 2029 notes may unwind their hedges by purchasing WisdomTree shares, potentially significantly impacting the company's stock price.
WISDOMTREE REVEALS PRICING FOR $525 MILLION CONVERTIBLE SENIOR NOTES OFFERING, INCLUDING $78.75 MILLION GREENSHOE EXERCISE AND SIMULTANEOUS EXCHANGES OF 2026 AND 2029 NOTES
Announcement of Offering: WisdomTree has announced the pricing of $525 million in convertible senior notes.
Related Exercises: The offering includes related exercises of $78.75 million in green shoe and concurrent exchange notes for 2026 and 2029.
WisdomTree Plans $525M Convertible Notes Offering to Fund Acquisition
- Financing Plan: WisdomTree plans to issue $525 million in convertible senior notes through a private placement, with an additional $78.75 million option, aimed at funding its acquisition of Atlantic House Holdings.
- Acquisition Funding: Approximately $200 million of the proceeds will finance the previously announced acquisition of Atlantic House Holdings, further strengthening the company's market position in the financial services sector.
- Debt Restructuring: Remaining proceeds will support debt refinancing, including convertible notes due in 2026, 2029, and 2030, aimed at optimizing the capital structure and reducing financial costs.
- Conversion Terms: The notes can be redeemed for cash starting April 2028 under specific conditions and are convertible before July 2031, providing flexible capital management options to navigate future market changes.
Surge in Options Trading Volume for Hertz and WisdomTree
- Hertz Options Volume: Hertz Global Holdings Inc (HTZ) has seen an options trading volume of 50,202 contracts today, representing approximately 5 million shares, which accounts for 83.4% of its average daily trading volume of 6 million shares over the past month, indicating strong market interest in its stock.
- High-Frequency Trading Insight: Within HTZ, the $3 strike put option expiring on June 16, 2028, has recorded a trading volume of 8,010 contracts today, equating to about 801,000 shares, suggesting an increased investor expectation for a decline in future stock prices.
- WisdomTree Options Activity: WisdomTree Inc (WT) has reported an options trading volume of 24,315 contracts today, representing approximately 2.4 million shares, which is 81.6% of its average daily trading volume of 3 million shares over the past month, reflecting sustained investor interest in its stock.
- Bullish Call Options Trend: For WT, the $15 strike call option expiring on September 18, 2026, has seen a trading volume of 12,041 contracts today, representing about 1.2 million shares, indicating a bullish sentiment in the market regarding WT's future price increase.
Victory Capital Withdraws Bid for Janus Henderson Amid Market Dynamics
- Acquisition Dynamics: Victory Capital's withdrawal from the bid for Janus Henderson has led to its acquisition by General Catalyst and Trian, indicating a critical price discovery moment in the asset management industry, with the deal priced at a modest 11.6x forward earnings estimates.
- Fee Pressure: Asset management fees are trending lower, with ETFs providing a compelling low-cost alternative for many investors; however, the bidding war for Janus Henderson suggests that some asset management firms may be undervalued, capturing market attention.
- Invesco's Market Position: As a heavyweight in the industry, Invesco manages $2.26 trillion in assets, with its QQQ Trust essentially acting as a money-printing machine, and its current trading price is significantly below what a private equity firm would pay to build the business from scratch, highlighting its strong competitive moat.
- Options Trading Strategy: By structuring options trades to offset the dividend one would forgo by not purchasing the stock, investors can effectively acquire IVZ shares at about a 9% discount if the stock falls below $22, while also positioning for a maximum payout of $2 if the stock benefits from the JHG deal, showcasing a flexible investment strategy.
WisdomTree Prices $603.75M Convertible Notes Offering Due 2031
- Convertible Notes Offering: WisdomTree successfully priced a $603.75 million convertible notes offering, including a full $78.75 million option exercised by initial purchasers, with an interest rate of 4.50% and a maturity date of October 1, 2031, expected to close on March 30, 2026, generating approximately $591.2 million in net proceeds.
- Attractive Conversion Terms: The notes have a conversion price of $21.58 per share, representing a roughly 60% premium over the last closing price of $13.49, which is expected to attract investors to convert their notes as the stock price appreciates, thereby enhancing the company's capital structure.
- Planned Use of Proceeds: WisdomTree intends to allocate about $200 million for the acquisition of Atlantic House, approximately $302.7 million to exchange existing 2029 convertible notes, with the remaining proceeds directed towards general corporate purposes, including debt repayment, reflecting the company's strategic intent to expand and optimize its capital structure.
- Debt Exchange Transactions Impact: Concurrently, the company reached agreements with noteholders to exchange existing debt, which is expected to result in a one-time loss of about $105 million; while this will impact financial performance in the short term, it is anticipated to alleviate future interest burdens in the long run.
WisdomTree Prices $603.75 Million Convertible Senior Notes Offering
- Financing Size: WisdomTree announced the pricing of $525 million in convertible senior notes with an additional $78.75 million purchase option, expected to settle on March 30, 2026, resulting in approximately $591.2 million in net proceeds intended for acquisitions and debt exchanges.
- Acquisition Funding: The company plans to allocate about $200 million of the net proceeds to finance the acquisition of Atlantic House Holdings, thereby strengthening its market position in financial innovation, while using remaining funds for general corporate purposes, including debt repayment.
- Notes Terms: The notes mature on October 1, 2031, with an interest rate of 4.50% and a conversion price of $21.58 per share, reflecting a conversion premium of approximately 60%, indicating the company's confidence in future stock price appreciation.
- Market Impact: WisdomTree anticipates recognizing a one-time loss of approximately $105 million from the notes exchange transactions, and holders of the 2029 notes may unwind their hedges by purchasing WisdomTree shares, potentially significantly impacting the company's stock price.
WISDOMTREE REVEALS PRICING FOR $525 MILLION CONVERTIBLE SENIOR NOTES OFFERING, INCLUDING $78.75 MILLION GREENSHOE EXERCISE AND SIMULTANEOUS EXCHANGES OF 2026 AND 2029 NOTES
Announcement of Offering: WisdomTree has announced the pricing of $525 million in convertible senior notes.
Related Exercises: The offering includes related exercises of $78.75 million in green shoe and concurrent exchange notes for 2026 and 2029.
WisdomTree Plans $525M Convertible Notes Offering to Fund Acquisition
- Financing Plan: WisdomTree plans to issue $525 million in convertible senior notes through a private placement, with an additional $78.75 million option, aimed at funding its acquisition of Atlantic House Holdings.
- Acquisition Funding: Approximately $200 million of the proceeds will finance the previously announced acquisition of Atlantic House Holdings, further strengthening the company's market position in the financial services sector.
- Debt Restructuring: Remaining proceeds will support debt refinancing, including convertible notes due in 2026, 2029, and 2030, aimed at optimizing the capital structure and reducing financial costs.
- Conversion Terms: The notes can be redeemed for cash starting April 2028 under specific conditions and are convertible before July 2031, providing flexible capital management options to navigate future market changes.
