Short Report: Wayfair bears scrambling as pre-earnings build-up is foiled

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 3.0%, the Nasdaq Composite was up 3.2%, the Russell 2000 index was up 2.9%, the Russell 2000 Growth ETF (IWO) was up 3.0%, and the Russell 2000 Value ETF (IWN) was up 2.8% in the five-day trading session range through May 9.

SHORT INTEREST GAINERS

• Ortex-reported short interest in Marathon Digital (MARA) has been on a gradual rise since March 1st when short positioning hit a multi-year low of 15%. Short interest was up to nearly 20% through April-end, though this week, shorts as a percentage of free float spiked up from 19.1% to 25.0%. Marathon Digital shares were up 15% in the five-day period, though higher downside exposure has proven to be prescient, with the stock falling over 12% on Friday after the company’s Q1 revenue shortfall reported after market close on Thursday.
• Estimated short interest in SunPower (SPWR) has been moving sideways in the 75%-80% range since mid-March while the stock declined over 20%. This week however, shorts as a percentage of free float made another thrust higher, rising from 77.2% all the way to 94.4% – a record high. Late last month, SunPower announced job cuts of over 25% of staff, and the company is now on deck for its Q1 results, with consensus estimates calling for a 7% decline in revenue. In the five-day period covered, SunPower shares were up nearly 9% this week.
• Ortex-reported short interest in IGM Biosciences (IGMS) recorded more than a seven-percentage point jump this week from 45% to 52.7% – a record high that eclipsed the prior 47% peak seen last June. The bulk of the increase was made in the aftermath of IGM’s Q1 earnings this week that drove a 9% gain in the stock price, though shares corrected with an 8% drop in Friday’s session. In the five-day period through Thursday, IGM Biosciences shares were up just over 7%.
• Estimated short interest in Maxeon Solar (MAXN) continued its six-month long upswing this week, with shorts as a percentage of free float rising to nearly 45% from 40% and days-to-cover on the name rising 50 basis point to 8.7 – both figures at the highest levels in over a year. Maxeon Solar reports Q4 results next week, having negatively pre-announced in early April, which drove a 9% drop in the stock price the following day. Shares are down 15% overall since that pre-announcement, but traded up 4% in the five-day period through Thursday.

SHORT INTEREST DECLINERS

• Bears had built up short positioning in Wayfair (W) from just 24% to nearly 26% – the highest level of 2024 – over the final week of April heading into the company’s Q1 results, but a smaller than expected loss, a revenue beat, and positive growth in active customers sent the stock higher and the bears scrambling to exit. In the aftermath of May 2nd earnings, the stock is up over 40%, while shorts as a percentage of free float receded from 25.7% to 20.7% – a multi-year low.
• Tesla’s (TSLA) announcement of staff cuts in its Supercharger division at the start of the month has given new life to the competition, with shares of Blink Charging (BLNK) up 27%, ChargePoint (CHPT) up 27%, and EVgo (EVGO) up 9% since their respective late-April lows. Blink Charging has also seen its short positioning notably co down with the stock price rally, receding from 23.9% to its 2024-low of 20.5%. The company also reported a smaller than expected Q1 earnings loss and higher than expected revenue after-hours on Thursday, though the stock did not sustain its initial upswing on Friday, ending the session flat. For the five-day period through Thursday, Blink Charging was down just under 2%.