Positioning In SmileDirectClub Highest On Record

Using the data from our partner Ortex, which utilizes the latest information from stock lenders to estimate short interest changes for thousands of publicly traded companies, this text will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios.

This report will also continue to layer 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 will continue to track the trading period that covers the prior Friday through Thursday of this week.

As a basis of comparison, the S&P 500 index was down 0.5%, the Russell 2000 index was up 1.2%, the Russell 1000 Growth ETF (IWF) was down 0.9%, and the Russell 1000 Value ETF (IWD) was flat in the time range.

Aerovate Therapeutics, MeridianLink, PowerSchool Short Interest Spikes

Aerovate Therapeutics (AVTE), MeridianLink (MLNK), and PowerSchool Holdings (PWSC) are the newcomers to our screen this week, popping up on the radar with no major news or fluctuation in sentiment from the retail trading community. Estimated short interest in Aerovate jumped to 185% from 6% over the five-day period as volume spiked last Friday, coinciding with the stock being added to the Russell 2000 index.

In the five-day trading period covered, Aerovate was down about 24%. MeridianLink short position also increased sharply in conjunction with the stock slide, rising to 151% from just 4% last Friday as shares fell just over 9%.

Recently-IPO’d and the largest of the three newcomers, PowerSchool Holdings saw its short interest spike to 184% from 6.8% while the stock fell in all five trading sessions. The stock had doubled since its late-July listing, but has now come in by nearly 50%, losing over 16% just this week.

IronNet, Welbilt Shorts Add to Their Positions

IronNet (IRNT) and Welbilt (WBT) – two of last week’s new entrants in our screen – have both seen increases in their estimated short interest. IronNet shorts were up by another nine percentage points to 25.4%, a record high, while those of Welbilt were up 17 points to 78.9% to round off the week, though that level spiked as high as 122% on Monday.

IronNet had seemed to be a stock of interest among the WallStreetBets community earlier in the month and quadrupled in price in the span of about three weeks before declining by 42% in this week’s five-day trading period ending Thursday. Shares of Welbilt were nowhere near as volatile, ending the five-day period down just 0.2%.

SmileDirectClub Short Interest Breaks Through 50% Level

SmileDirectClub (SDC) trading volume has remained elevated over the past couple weeks and its estimated short interest has continued to build, rising another nine percentage points this week to 57.4% - the highest level recorded for the name. The stock has also seen sustained interest as a “meme play,” trending with the most number of WallStreetBets thread mentions this week, though shares ended up just 1.7% in the five-day period covered.

Dillards, National Beverage Mark this Week's Biggest Short Interest Decliners

Among the week’s most notable short-interest decliners, Dillards (DDS) bearish position was reduced by four percentage points to 18.9%, while that of National Beverage (FIZZ) slid by five points to 21.7%. Day-to-cover ratios for both names were also down by just over 15% to 2.7 and 4.5, respectively.

The estimated short interest in Dillards had seen its highest levels in three months back on Sept. 1, just shy of 40%, but has steadily declined since then, approaching this year’s lows.

Similarly for National Beverage, the shorts as a percentage of free float hit its highest level in about six months just last week, but plunged to its lowest levels since mid-June as of Thursday. Dillards shares were up 3.7% and National Beverage stock ended Thursday flat for the five-day trading period covered.

Disclosure: None

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