Avis Budget Short Interest Soars to 67.7%
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 2.0%, the Nasdaq Composite was down 3.1%, the Russell 2000 index was flat, the Russell 2000 Growth ETFwas down 1.3%, and the Russell 2000 Value ETFwas up 1.4% in the five-day trading session range through March 26.SHORT INTEREST GAINERSAirport disruptions with long lines at TSA counters due to the partial U.S. government shutdown have diverted travelers to the car-rental counters, and the price action in Avis Budget Groupsure reflects this surge in demand. After five strong sessions, shares of Avis are up 39% in the five-day period covered through Thursday and up 9.3% year-to-date. Bears, however, are betting that the run-up mean-reverts, with short interest on the stock spiking from last week's four-month low around 55%. Specifically, Ortex data is seeing short positioning as a percentage of free float on Avis Budget up from 55.5 to 67.7% - a record high. Days-to-cover on the name was also higher, though at a more modest margin to reflect a surge in trading volume on Thursday, rising from 11.6 to 12.7.Ortex-reported short interest on Sweetgreenhad fallen to a seven-month low of 21.5% just last week, though this week has seen a spike in bearish positioning. Deteriorating consumer sentiment in an environment of rising energy prices and uncertain labor market is weighing on fast-casual dining overall, though the healthy options with a premium cost are getting chopped more than their peers. Short interest as a percentage of free float on Sweetgreen was up from 21.8% to 25.2% - a one-month high. Meanwhile, the stock was down over 7% in the five-day period covered through Thursday and down another 6% amid a broader market selloff on Friday.Ortex-reported short interest on RHhas been tracking consistently higher for a period of about a month, though this week, the rise in bearish bets was especially pronounced – short positioning as a percentage of free float jumped four percentage points to 31.3% by Thursday, with intra-week high of 32% also registering a record high. The stock, meanwhile, is down 45% from its January high, though much of that decline occurred over the first half of March, and this week, shares of RH were down just 1.8%. The company reports its FY25 results through a period ended January 31 this coming Tuesday.SHORT INTEREST DECLINERSOrtex data shows short positioning in Aeva Technologiespulling back from its multi-month highs above 40% just four weeks ago, even though the stock's upside momentum since its trough over the first week of February has finally broken down. Short interest as a percentage of free float on Aeva fell another eight percentage points this week to about 28%, a four-month low, with days-to-cover on the name slipping from 3.7 to 3.3 – also the lowest level since late November. The stock, meanwhile, sold off by 6.6% in the five-day period covered through Thursday and fell another 10% on Friday, even though shares are still up about 13% from February's lows.Ortex-reported short interest on Intuitive Machinessaw its highest levels around 34% in the final week of February, though with the stock still up 25% this month against a sizeable decline in the broader market, bears are moving on to more obvious opportunities. This week, shorts as a percentage of free float on Intuitive Machines fell from about 34% to as low as 23% - a two-month low. The stock was up 1.7% in the five-day period covered through Thursday and also remains higher by over 10% on the year, though shares are down over 6% late on Friday.
