Vital Farms Short Interest Rises to 40.6%
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 1.8%, the Nasdaq Composite was up 3.7%, the Russell 2000 index was up 1.4%, the Russell 2000 Growth ETFwas up 1.9% and the Russell 2000 Value ETFwas up 1.1% in the five-day trading session range through May 7.SHORT INTEREST GAINERSOrtex-reported short interest on Vital Farmscontinued its steep ascent this week, rising another three percentage points to 40.6% - the highest level on record. Days-to-cover on the name slipped from 5.5 to 4.9 as trading volumes soared to their highest levels of the year after the company reported Q1 results on Thursday. As discussed last week, the resurgence in bearishness since the final week of March coincided with the stock settling into a trading range, though the severe post-earnings decline rewarded shortsellers as shares fell over 20% in a single session. The 5-day period tally through Thursday saw the stock fall 30%, and year-to-date, Vital Farms is now down 70%.Ortex-reported short interest on Kura Sushitroughed at about 27% early last week just as shares slipped to their lowest level of the year. Bears have increased exposure, however, with the stock price settling into a sideways trading range. Short interest as a percentage of free float rose from 27.2% to 30.3% this week while days-to-cover is nudged higher from 6.3 to 6.6. The company is about a month out from reporting its Q2 results in early April, along with the departure of its CFO, which prompted an 18% decline in the stock price, even though the Street bumped up their price targets on the name. In the five-day period covered through Thursday of this week, shares of Kura Sushi were up 2.2%, and year-to-date the stock is up about 8%.Ortex-reported short interest on Fluence Energyhas nudged higher from 25.4% to 26.9% and days-to-cover on the name was unchanged at 4.9. The six-week-long uptrend in bearish positioning will surely be tested in the coming sessions however as the stock is soaring after better-than-expected results out Wednesday evening and positive research notes from sell-side analysts – Roth Capital pointed to Fluence Energy's "significant commercial momentum" in upgrading the stock to a Buy while Goldman Sachs cited the company's data center opportunity in bumping up its price target and retaining its Buy rating. In the five-day period covered, the stock is up 56%, with another 28% gain coming on Friday.SHORT INTEREST DECLINERSShares of Newegg Commercehit 2026 lows with a 16% decline in the five-day period covered through Thursday and another 12% selloff on Friday, having now retreated by about 45% from early-April highs in just a three-week span, and short-sellers are seemingly booking profits. In the five-day period covered through Thursday, short interest as a percentage of free float on the online PC hardware and electronics retailer fell from 51.0% all the way down to about 25% - the lowest level since December – according to Ortex data. Days-to-cover on Newegg nudged higher meanwhile, rising from 4.2 to 4.3.Ortex-reported short interest on Concentrixhad reached multi-month highs near 30% entering the final week of April, though bearish positioning has now receded for the second consecutive week, slipping from 26.3% to 20.3% in a 5-day period covered through Thursday. Days-to-cover on the name also slid from 7.0 to 6.3, further skewed by elevated trading volume - the second highest session of the year - seen last Friday. The stock was down sharply after the company reported a Q1 earnings miss in late March and then saw its lowest levels of the year in late April before finding its footing this week - shares were up 7% this week, though year-to-date the stock remains down 39%, with another 5% loss on Friday tracking broader weakness in IT services.
