Short selling is a costly, risky endeavor, but investors can also use this list of stocks with high borrow fees as a guide of which stocks to potentially avoid holding in a long portfolio as well. Plus500. Due to the limited stock borrow availability, SPAC stock loan rates in the Miscellaneous sector continued to be the most expensive sector to short with rates rising +49 bps from 5.21% to 5.70%. FAANG stocks were up an average of +27.3% in 2021 but Amazon.com Inc (AMZN) underperformed the group significantly with only . June 4, 2021: $21.6 billion with $5.47 billion in revenue = 3.9x market cap to revenue. To put this into context, fellow meme stock AMC Entertainment has a short interest . At the end of April, 100.63 million shares were being shorted. In fact, the short interest in many of these speculative names has gone up in recent weeks, according to data firm S3 Partners. Redditors saw AMCs high short interest data could drive short sellers to close their positions by buying the stock as a collective. Short interest in GameStop as a percentage of the company's float declined to 12.3% in August, according to MarketBeat, drastically lower than a high level of 141% in January, according to S3 Partners. The data reveals that GameStop's short interest currently stands at $1.76 billion after it dropped by $880 million in just two weeks following the short sellers' recovery . Figure 1:This Could Be a Bad Time to Bet Against AMC. What we do know is that CEO Adam Aron plans to tackle the short thesis fundamentally. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. (Disclaimers: this is not investment advice. He continued, A short position, no matter how crowded, that continues to be profitable cannot be squeezed. In fact, AMC reported the best first quarter in the last two years. American Consumer News, LLC dba MarketBeat 2010-2023. Shares of the movie theater chain rallied more than 116% since Monday. June 3rd, 2021, 12:17 PM PDT. Short sellers made $14.3 billion in paper profit from their bearish bets on global banking stocks in March, according to analytics firm S3 Partners, as the collapse of U.S. lender Silicon Valley Bank. Researcher and operations manager at DM Martins Research. AMC Entertainment S3 Partners estimates AMC short sellers paid a total of $1.91 billion in stock borrow fees in the first quarter of 2023, up from $1.54 billion in the fourth quarter of 2022. . 1,359 likes, 60 comments - Stock Sharks (@stocksharks) on Instagram: "Passionate day traders glued to their Reddit message boards have found their new favorite . S3 Partners (@S3Partners) / Twitter Here is how the short interest of companies in the sector of "consumer discretionary" compare to AMC Entertainment: Cinemark Holdings, Inc. (25.76%), Grupo Televisa, S.A.B. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The Health Care sector had a -0.54% decrease in SI % Float to 5.82% as we saw appreciable short covering in the sector. Short sellers raise bets against GameStop and AMC to highest level in a AMC Entertainment Is Most Expensive Stock For Short Sellers, But What Other Stocks Top The List? S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the companys short interest. Ihor Dusaniwsky on Twitter: "$AMC short interest is $2.36BN 90.52M Mark-to-market losses are the primary impetus for a Short Squeeze to occur, and AMCs recent rally has pushed it into potential Short Squeeze territory.. AMC has not yet fully recovered from the effects of the pandemic. How does AMC Entertainment's short interest compare to its competitors? AMC shares currently have a short interest ratio of 4.0. Short interest in the domestic market decreased by -$46.7 billion, or -3.93%, to $1.14 trillion in the third quarter of 2021. The highest stock borrow fees, as of September 30th, for stocks with over $100 million of short interest were: Short sellers were up +$47.2 billion in 3rd quarter mark-to-market profits, +4.02%. Dusaniwsky has developed a Short Squeeze score and ranks AMCs metric a 10 out of 10 for a short squeeze. As the chart below shows the number of shares being shorted fell significantly in late January (the gold line) when the stock had its initial pop due to wallstreetbets Reddit crowd jumping in. Despite the company showing signs of recovery from the COVID pandemic, short sellers continue to bet against its stock. Beyond Meat (BYND) Initiated with a Hold at BMO Capital, 7 Short-Squeeze Stocks That Could Make You Rich, 3 Short-Squeeze Stocks Set for an April Rally, Registration on or use of this site constitutes acceptance of our. S3 looked at stocks with at least $100 million in short interest and ranked them by their stock borrow fees . AMC's Stock Set Up For A Short Squeeze - Forbes When calculating the companys valuation metrics these results use fiscal 2018s $8.3 billion in revenue so as to be as generous as possible. This breakthrough stock has bright future this decade. The ten stocks that short sellers had the most conviction and paid the most to short made up 17% of the total borrow cost in the quarter, they were: HOOD (-$79mm), CPNG (-$60mm), LCID (-53mm), IRNT (-$24mm), VMW (-$23mm), FFIE (-$22mm), TSLA (-16mm), CVAC (-$16mm), GREE (-$14mm) and BLNK (-$14mm). Sign up for our newsletter to get the inside scoop on what traders are talking about delivered daily to your inbox. As of April 15th, investors have sold 137,470,000 shares of AMC short. See here for a complete list of exchanges and delays. 86% of retail CFD accounts lose money, Beyond Meat hosts conference call for investors, Short Interest Sector Focus: Consumer Defensive Sector. Year to date shorts positions in First Republic are up $971.8 million, according to Dusaniwsky. The indicators, strategies, columns, articles and all other features herein are for informational and educational purposes only and should not be construed as investment advice. Dusaniwsky added, While a stock can be crowded it might not necessarily be a short squeeze candidate. However, even when these criteria are met it does not necessarily mean the stock is a short squeeze candidate. At the current valuation AMCs shares are 12.7 times more expensive than 2017s valuation level. He speaks with Bloomberg's Matt Miller on "Bloomberg Markets." (Source: Bloomberg) You can now read exclusive FrankNez articles for only $1/mo. Highest Borrow Fees: Incredibly, short sellers are currently paying a 168.3% fee to borrow AMC shares, more than double the borrow fee of any other stock, according to S3. The number of GameStop shares being shorted was at its peak before retail traders combined to 'short squeeze' the stock, ultimately . Our Crowded Score takes a multi-factor approach to identify short-side crowded securities and take into consideration: Short Interest as a true percentage of a companys tradable float (which includes synthetic longs created by short selling). Gary Gensler, Ken Griffin: Involved in Audit Quality Scheme? "FRC shorts are now profitable in April, up +$195.0 million in month-to-date mark-to-market profits.". Lemonides mentioned that "there's been too much confidence among the shorts that these businesses are completely failed.". However, NASDAQ publishes a report for U.S. stocks, including AMC, twice per month. S3 looked at stocks with at least $100 million in short interest and ranked them by their stock borrow fees. TV Shows. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Sign up to receive the latest short interest report for AMC Entertainment and its competitors with MarketBeat's FREE newsletter. AMC shares are trading down $0.09 today. At one point it hit $36.72, which was 204% above last Fridays close. AMCs short interest per S3 Partners and Ortex data is nearly identical. At its peak, the stock reached $36.72 a share. Accept Read More. When a heavily shorted stock jumps higher in a rapid fashion, short sellers are forced to buy back borrowed shares to close out their short position and cut losses. Before Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash . Short sellers have now lost grip as the cost to short the stock has dramatically increased. GameStops valuation also doesnt make sense. Though the company ended the first quarter with $1 billion in liquidity, the most it's ever had in its 100-year history, that cash will only keep it afloat through 2022 unless audiences return in droves to make up for months of no revenue. Thanks to this combination of improving fundamentals and growth efforts, AMC is slowly changing. Exclusive news, data and analytics for financial market professionals, Reporting by Herbert Lash in New York
