RH Stock Short Interest Hits Record High of 26.7%
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 down 2.3%, the Nasdaq Composite was down 1.9%, the Russell 2000 index was down 3.7%, the Russell 2000 Growth ETFwas down 3.7%, and the Russell 2000 Value ETFwas down 3.7% in the five-day trading session range through March 12.SHORT INTEREST GAINERSOrtex-reported short interest on RHover the past three weeks has been a one-way street higher from 21% to nearly 27% while the stock has erased the entirety of its 30% gain made over the first two weeks of January and then lost even more ground. This week, the increase in bearish appetite has been more pronounced, with shorts as a percentage of free float jumping three and a half percentage points to 26.7% - a record high for the high-end furnishing distributor. Days to cover on the stock has also increased notably from 3.5 to 4.0 despite the rise in trading volume. Zooming out, RH shares had more than doubled from the "Liberation Day" lows last April, though following the recent downdraft, the stock has now come in to within 5% of that trough. In the five-day period covered through Thursday of this week, shares of RH were off by 14%.Ortex-reported short interest on United Parkssoared this week as bears latched on to the momentum of the stock price breaking down from its 2026 trading range to the lowest levels since mid-November, with traders pressing their bets that the rise in travel costs and risks will impact discretionary theme park spending. Shorts as a percentage of free float leapt from 23.9% to 35.6% - the highest level on record. Days to cover on the name nudged from 6.0 to 6.1, with the lower margin of increase reflecting the rise in trading volume on the stock. Shares fell about 12% in the five-day period covered, and year-to-date, the stock is now off by 14%.Ortex-reported short interest on Netskopehad troughed around 25% in mid-February, just ahead of the stock's bounce following a 45% decline through the first half of last month. Bearish positioning has advanced for four consecutive weeks since then as the stock traded in a wide range, though the company's post-earnings double-digit fall this week supported the increase in positioning. Shorts as a percentage of free float on Netskope was up from 37.6% to 45.4% - a two-month high – while the stock fell 17.5% in the five-day period covered. Year-to-date, Netskope is now down 45%.SHORT INTEREST DECLINERSOrtex-reported short interest on Avis Budgethas bounced around the 55%-65% range since November of last year, even though the stock has traded around with a much more negative bias. This week, a decline in short positioning from 63.5% to 55.8% is reflective of the bears reducing exposure, with the spike in trading volume over the course of the week following the company's earnings in mid-February also pressuring its days-to-cover levels – down from 13.2 to 11.3. Avis Budget was up 2.3% in the five-day period covered through Thursday – the best performer among mid-to-large cap Leasing names this week – though the stock is also one of the bigger decliners in the industry on a year-to-date basis, with a loss of over 20% much more emblematic of the headwinds faced by the adjacent travel industry.
