Short Report: Bearish positioning in Oddity Tech at record 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 up 0.5%, the Nasdaq Composite was up 0.1%, the Russell 2000 index was up 0.7%, the Russell 2000 Growth ETF (IWO) was up 0.7%, and the Russell 2000 Value ETF (IWN) was up 0.7% in the five-day trading session range through August 22.

SHORT INTEREST GAINERS

• Ortex-reported short interest on Oddity Tech (ODD) had tracked in a 28%-31% range since the last week of May, though this week had seen an outsized increase in bearish interest. Shorts as a percentage of free float jumped from 29% to record high of 43%. Meanwhile, despite the relatively high-volume days of Wednesday and Thursday, days-to-cover ratio on the stock also rose from 10.1 to record-high 12.7. The stock was down 6.4% in the five-day period through Thursday and also did not participate in Friday’s broader market melt-up, slipping another 1%. Year-to-date, Oddity Tech is down about 18%.
• Estimated short interest on Archer Aviation (ACHR) had dipped toward the low end of its five-month-long range around 26% late last week before a bounce this week toward the 2024 high established earlier this month just shy of the 30% mark. Shares of the air-taxi developer have now erased nearly all of their recent bounce driven by the $55M investment from Stellantis (STLA) announced in early July, and have also fallen nearly 40% year-to-date. In the five-day period covered this week, Archer traded up about 1%.
• Ortex-reported short interest on Lovesac (LOVE) carved out a new high for the year at 28.8%, gaining over two percentage points from last Thursday’s dip to a three-week low below 27%. Days-to-cover on the name was also up to a notable four-month high of 9.1 – a 60 bps increase from last week. Activist stake disclosed by Anson Funds in early July had prompted a 35% jump in the stock within a week, though Lovesac shares have now pared all of those gains amid the broader market pullback in early August. Volatility has been more subdued lately, with the stock trading flat in the five-day period covered through Thursday.

SHORT INTEREST DECLINERS

• Ortex-reported short interest in World Acceptance (WRLD) had doubled from the 14% plateau in the first week of August to 28%, though this week had seen a retrenchment in short positioning while shares also corrected from their late July-early August swoon. In the five-day period through Thursday, short positioning as a percentage of free float was down to 24.3%, days to cover rose from 13.3 to 13.8 as trading volumes remained steady, and the stock slipped just 0.7 before a 5.4% bounce on Friday. Year-to-date however, World Acceptance is still down over 10%.
• Estimated short interest in Vital Energy (VTLE) had risen from 23% to about 32% in the aftermath of the stock’s near-20% decline in early August as bears pressed their bets rather than taking profits. This week however, Ortex-reported short interest as a percentage of free float was dialed down from 31.4% to 24.8% even though the stock remained under pressure. In the five-day period through Thursday, Vital Energy was down another 4%, and while the stock tracked Friday’s broader market advance with a 2.5% rally, shares remain down 20% for the year.