Short Report: Sirius XM bears pressing bets into stock rally

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 up 0.7%, the Nasdaq Composite was up 0.3%, the Russell 2000 index was down 1.1%, the Russell 2000 Growth ETF (IWO) was down 1.1%, and the Russell 2000 Value ETF (IWN) was down 1.0% in the four-day trading session range through June 20.

SHORT INTEREST GAINERS

• Ortex-reported short interest in Sirius XM (SIRI) is up for the second week after troughing in the first week of June just below 23%. This week, shorts as a percentage of free float was up two percentage points to 25.7% – the highest level since early March. Days to cover on Sirius also bounced from multi-month lows this week, rising from 9.3 to 10.4, though the stock saw a steep spike in trading volume on Friday. Sirius XM shares were up 14% in the four-day period covered this week, rising in every session, though the stock remains down 47% year-to-date.
• Estimated short interest in Altimmune (ALT) has seen a steady uptrend for two and a half months, having nearly doubled since the first week of April, and this week, short positioning on Altimmune as a percentage of free float was up about three percentage points to 37.5%. Likewise, exchange-reported data available as of May-end has seen six consecutive increases in Altimmune’s semi-monthly reporting periods. Bears here are also boosting their exposure as the price action heads south – shares of Altimmune are now down 60% from late February’s peak and down 47% year-to-date. In the four-day period covered through Thursday of this week, the stock was down 10%.
• Ortex-reported short interest in The Children’s Place (PLCE) exceeded 40% for the second time this year in the first week of May before a broader meme-stock rebound among highly shorted names saw its shares nearly double within a two-week span, driving short-covering back to about 20%. This week, while the stock traded down in all four sessions, bearish positioning is being built up in anticipation of further losses as short percentage of free float rose from 20.4% to 23.2%. In the four-day period through Thursday, The Children’s Place shares fell about 22% and have now declined 53% from late May highs.

SHORT INTEREST DECLINERS

• Ortex-reported short interest in Kohl’s (KSS) hit its highest level of the year last Wednesday at 36%, though bearish positioning has since receded for six consecutive sessions, slipping from 33.8% to 30.8% – a two-month low – in the four-day period covered through Thursday. The stock fell over 20% when the company reported disappointing Q1 earnings loss and cut its FY24 guidance on May 30 and remains down 18% relative to pre-earnings levels, likely prompting some profit-taking among the bears. Kohl’s shares also traded flat in the four-day period covered through Thursday and rose about 3% with a notable increase in trading volume on Friday.
• Estimated short interest in ProKidney (PROK) fell sharply from 23% all the way down to 12%, which was its lowest level in about a year. The stock was also down about 14% in the four-session period covered, though shares are still up about 40% year-to-date. Bearish positioning is on the decline since the company secured an upsized $140M round of equity financing earlier this month. The secondary offering was also priced on par with the stock’s prior closing levels, driving a 24% spike in the stock price the following trading session.