Short Report: Archer Aviation shorts at seven-week high

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 down 1.4%, the Nasdaq Composite was down 1.7%, the Russell 2000 index was down 1.0%, the Russell 2000 Growth ETF (IWO) was down 1.0%, and the Russell 2000 Value ETF (IWN) down 0.8% in the five-day trading session range through October 31.

SHORT INTEREST GAINERS

• Ortex-reported short interest on Archer Aviation (ACHR) has continued its lift-off from late-September trough of 24.5%, rising another 130 basis points from 27% to 28.3% this week – the highest level since September 10. Despite the rise in trading volumes since October 22, days-to-cover on the name has also tracked steady to higher, rising 30bps to 9.4. Archer Aviation reports Q3 results this coming Thursday, and while the stock was down double-digits when the company last reported in August, investors will tune in on the impact of the recent FAA regulations detailing the final rule on advanced air mobility aircraft. Shares of Archer were up 2% this week, though the stock is still down 47% year-to-date.
• Estimated short interest on Tango Therapeutics (TNGX) had fallen to a three-month low of about 18% late last week before being restored above 20% – a level where bearish positioning has steadily tracked since September 10th. Shorts as a percentage of free float gained three points to 21% in the five-day period through Thursday, though the stock has continued to slide lower, falling about 14% heading into Q3 earnings. Shares of Tango Therapeutics are now down 48% year-to-date.
• Ortex-reported short interest on Intuitive Machines (LUNR) has been on a gradual uptrend since the end of September, and this week saw bearish positioning lift from 30.7% to 33.5%, though Tuesday’s high of 34.8% was the biggest bearish expression in six weeks. The company reports Q3 results on November 14, and heading into earnings, the stock has largely preserved the gains registered in mid-September when Intuitive Machines was granted a $4.8B NASA order. This week, shares were down 1.5% in the five-day period covered, though year-to-date, Intuitive Machines is up 217%.
• Ortex-reported short interest on Biomea Fusion (BMEA) has tracked sideways but in a relatively wider band of 35%-42% since mid-September, and after a dip to 35.5% early this week, bears reloaded following earnings on Tuesday with a three-point boost in their positioning to 38.5%. The stock of the diabetes/obesity biotech also fell 27% from peak pre-earnings levels and was down 19% overall in the five-day period through Thursday, even with at least two sell-side firms boosting their price targets while cheering Biomea management guiding towards Phase 2 topline readouts for COVALENT-111 and COVALENT-112 in T2D and T1D next month.

SHORT INTEREST DECLINERS

• Estimated short interest on UWM Holdings (UWMC) had spiked up to 32% earlier last week, as the stock renewed its decidedly-lower path, though this week, bearish positioning had normalized somewhat. Shorts as a percentage of free float retreated from 28.3% to 23.2%, according to Ortex data, and days-to-cover on the name slipped from 1.5 to 0.8 despite the generally steady trading volume trends. Ahead of its earnings this week, UWM Holdings was down 3.7% in the five-day period covered through Thursday, with the stock having now fallen 12% year-to-date.