Sable Offshore Short Interest Soars to 47%
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 0.4%, the Nasdaq Composite was up 0.4%, the Russell 2000 index was up 1.9%, the Russell 2000 Growth ETFwas up 2.1%, and the Russell 2000 Value ETFwas up 1.6% in the four-day trading session range through February 19.SHORT INTEREST GAINERSOrtex-reported short interest on Sable Offshoretroughed at five-week lows of around 28% in the first week of February but has since risen for two consecutive weeks. This week, short positioning as a percentage of free float on the name was especially pronounced, jumping from 32.4% to 47% - a record high. Days-to-cover on the name was also up from 4.2 to 4.5. The stock has been in the crosshairs of investigative reporting by Hunterbrook Media questioning the company's liquidity since October of last year, and on February 3rd, the management has conceded with a $250M at-the-market offering, while the company has also disclosed SEC subpoenas in connection with the publication's allegations of inappropriate communication with investors by Sable CEO. Shares were up 8.4% in the four-day period covered, though year-to-date, the stock is down about 1%.Ortex-reported short interest on Shift4 Paymentshad tracked in a four point range of 23%-27% since mid-November while the stock peaked at the end of November and then caved by about 30% into the first week of February. With shares settling into a trading range this month but an earnings report looming for the company this Thursday, and with negative sentiment reverberating across the Infrastructure Software industry for much of this month, bears are betting on some catch-up selling. While the stock rose 7.2% in the four-day period covered through Thursday, shorts as a percentage of free float on Shift4 jumped from 26.9% to 43.8% - a record high – while days-to-cover on the name rose from 8.3 to 8.4.Ortex-reported short interest in Netskopehad receded to four-week lows around 48% as of last Friday before a surge in bearish appetite seen this week, with shorts as a percentage of free float spiking from 50% to about 62%. The company reports its Q4 results on March 11, though in the meantime, shares have been caught up in the downdraft impacting much of the infrastructure software industry, receiving multiple price target cuts within recent days due to compressing multiples in that group. The stock was up 1.5% in the four-day period covered through Thursday before Friday's 10% selloff, and year-to-date, Netskope is now down 40%.SHORT INTEREST DECLINERSAs profiled here three weeks ago, Ortex-reported short interest in Mobileye Globalhas been rising steeply and consistently, having since reached a four-month of about 26% late last week. Bearish positioning was abruptly pared back this week however, with no major news catalysts or unusual volatility in shares. Short interest as a percentage of free float in Mobileye was down from 26.1% all the way to 18.3%, a two-month low, though with trading volumes also normalizing after elevated activity to start the year, days-to-cover on the name was little changed at 4.3. The stock was down 2.2% in the four-day period covered, and year-to-date, shares are now off by 13%.
