Short Report: Bearish positioning in Cinemark caves as shares shine

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 0.4%, the Nasdaq Composite was down 0.6%, the Russell 2000 index was up 2.5%, the Russell 2000 Growth ETF (IWO) was up 2.0%, and the Russell 2000 Value ETF (IWN) was up 3.0% in the five-day trading session range through August 29.

SHORT INTEREST GAINERS

• Ortex-reported short interest on CompoSecure (CMPO) had tracked in a 28%-29% range over the course of the prior two weeks but saw an outsized lift this week, rising from 29% all the way to 46% – a six-month high. Trading volumes have also thinned out for the stock in the second half of August, driving the day-to-cover ratio on the name to spike from 10.6 to 13.6. Shares of CompoSecure ended the five-day period covered up just under 2%, though the stock is up 117% year-to-date and up 56% since last reporting Q2 results on August 7.
• Ortex-reported short interest on Comstock Resources (CRK) put in a four-month low of about 24% on August 9th but has since risen for three consecutive weeks. This week marked the highest rate of accelerating bearish expression, with shorts as a percentage of free float rising from about 28% to just over 36% – a record high. Similarly, with weekly trading volume on the name dipping to a five-week low, days-to-cover on Comstock Resources has risen from 11.5 to 13.2 – also a record high. The stock traded flat in the five-day period covered through Thursday but is up 20% year-to-date.
• Estimated short interest on Blink Charging (BLNK) gained about six percentage points this week, rising from 22% to 28%, which marks the highest level of bearish positioning in over five months. Days to cover on Blink Charging rose from 5.8 to 6.4 – a two-month high. August has not been particularly kind to the EV charging leader – the stock is down over 40%, with more than half of the decline coming after the company reported another disappointing quarter of below-consensus revenue and earnings. In the five-day period covered, Blink Charging shares are down 9%.
• Ortex-reported short interest in Forward Air (FWRD) troughed about two weeks ago at a three-month low of 20.4% but has since risen for two consecutive weeks. This week, shorts as a percentage of free float on the stock was up from 25.1% to 28.1% – the highest since late July. Days to cover was up from 4.4 to 5.4 – a two-month high. The shipping logistics company has had a difficult 2024 with a decline of nearly 50%, though all of the losses were endured in the second half of the year, and Forward Air has nearly tripled from late May lows. The stock was up 5.8% in the five-day period covered this week.

SHORT INTEREST DECLINERS

• Ortex-reported short interest on Cinemark (CNK) continues to retreat following a spike two weeks ago. Shorts as a percentage of free float jumped to a three-month high just over 30% on August 16th but have since come in for two straight weeks, slipping from 26% to a 2024 low of 23% this week. The stock’s recovery in 2023 has been followed by an even more remarkable 2024 as the rebound in box office numbers helped Cinemark to a 94% year-to-date rise. The stock’s August performance is also helping to thin out the bearish ranks – Cinemark shares were up 16% in the month while gaining 1% in the five-day period covered through Thursday.