Short Report: Mobileye bears fade stock bounce

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 Ortex.com, 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 flat, the Nasdaq Composite was up 0.1%, the Russell 2000 index was up 0.6%, the Russell 2000 Growth ETF (IWO) was up 0.4%, and the Russell 2000 Value ETF (IWN) was up 1.0% in the four-day trading session range through July 10th.

SHORT INTEREST GAINERS

• Ortex-reported short interest in MobilEye (MBLY) had tracked in 22%-23% range from the last week of April through the first week of July, though this week has seen a more pronounced increase in bearishness. Shorts as a percentage of free float rose from 22.5% to 26.3% – a two and a half month high while days-to-cover rose from 5.2 to 5.6, just as shares fell over 10% in a two-day span through Thursday and 13% in the four-day period covered. The stock had tracked strength in Tesla (TSLA) following its Austin cybertaxi launch in late June, though the bullish sentiment and a higher-than-expected Q2 revenue pre-announcement this week was overshadowed by the company’s 50M share secondary, along with the announcement that Intel (INTC) is selling 8% of its 88% holding in the company. The stock was down another 3% on Friday and has now lost 19% year-to-date.
• Ortex-reported short interest in Quantum Computing (QUBT) had matched an all-time high of 25% established in late 2024 for the third time in the last week of June, though this week has finally seen the bearish appetite reach a new peak. Shorts as a percentage of free float on the name jumped from 23.9% all the way to 27.6%. The stock, meanwhile, corrected about 9%, consolidating a 41% run of the prior two weeks. Quantum Computing was down another 9% on Friday, though even after this week’s declines, the stock is still trading up 5% year-to-date.
• Ortex-reported short interest in NuScale Power (SMR) had been in retreat over the second half of May when the stock price began its steep climb higher, though the bias reversed course two weeks into the move and bears were more inclined to increase exposure, even with the run-up in the stock price through the entire month of June. This week, shorts as a percentage of free float rose from 20.7% to nearly 23%, which is also less than one percent away from the highest level in short interest since February. The stock was up less than 1% in the four-day period covered through Thursday, though Friday saw shares gain over 4%. Year-to-date, NuScale Power has now doubled.

SHORT INTEREST DECLINERS

• Ortex-reported short interest in Petco Health (WOOF) rose from about two percentage points to 32% over the first half of June in the wake of the company reporting a worse than expected set of earnings on June 5th that also saw the stock crater some 35% in two-week time. Shares have since bounced from their June 17th lows, gaining nearly 30%, and short positioning as a percentage of free float has also receded. This week, short interest on Petco fell from 29.5% to 23.7% – a one year low. Ortex data echoes exchange-reported short interest which was last reported down from nearly 30% to 25% as of June 30th. In the four-day period covered, the stock was flat.