He wrote in an email, A security is considered crowded on the short side if some or all of the following occur:, However, even when these criteria are met it does not necessarily mean the stock is a short squeeze candidate. S3 Partners founder Robert Sloan examines the short-selling activity surrounding AMC and the top short-squeeze risks. AMCs short interest came down to 14% after the surge but began to rise again all throughout 2022. The Miscellaneous (primarily SPACs) sector has the largest SI % Float at 9.59% and Consumer Discretionary (6.45%) was the only other sector over 6%. This just defies all logic.". Using this method, a sell signal for AMC would not be generated unless the 200-day moving average crossed above the 50-day moving average. The company has about 20% of its outstanding shares sold short, compared with an average of 5% short interest in a typical U.S. stock, S3 Partners said. Even with the Reddit crowd targeting AMC for months, and a surging stock price, the company's short interest remains high at around 20% of outstanding shares, according to data from S3 Partners . AMC Street performers in Minnie Mouse costumes pass in front of an AMC movie theater at night in the Times Square neighborhood of New York, Oct. 15, 2020. 2023 S3 Partners, LLC. They may exit or trim their positions if trading or stock loan liquidity diminishes significantly or if their expected Alpha is reached and there are more attractive trades elsewhere. I cover technology companies, worldwide economies and the stock market, A customer gets a bucket of popcorn before seeing, g a movie at AMC Town Square. High stock borrow fees can test the conviction level of short sellers as financing costs can take a large bite out of expected Alpha. Use this data to understand bearish bets, conviction levels and what is driving price action, and identify which trades are crowded and why for over 65,000 global securities. S3 Partners LLC. Thanks for supporting Wall Street Memes). Dusaniwsky calculates that there continues to be moderate short covering in GameStop with short sellers covering 262,000 shares, worth $68 million, over the last 30 days but most of that short covering occurring over the last week with 145,000 bought-to-cover, worth $38 million. Which stocks are the most shorted right now? View which stocks are hot on social media with MarketBeat's trending stocks report. Investors shorting the meme stock AMC Entertainment are estimated to have lost $1.23 billion over the last week. See, AMC stocks short interest data is a recipe for a short squeeze, something similar to what occurred in January and June of 2021. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Is the 149% Dividend for ZIM Integrated Shipping in Jeopardy? No representation or implication is being made that using the methodology or system will generate profits or ensure freedom from losses. An increase in short sale volume suggests bearish (negative) sentiment among investors. The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. You must independently assess the risk of any investment or trading activity and make your own independent decisions regarding any securities mentioned herein. As AMCs stock price came back down the number of shares shorted steadily increased until mid-April, where it has essentially remained around 90 million. Throughout 2022, AMC was one of the preferred stocks to short - and it turned out to be a great investment for short-sellers. The retail investors' agenda has been to keep AMC alive and to "stick it" to the hedge funds, one analyst told CNBC. Short interest stands . Data from S3 partners reveal the AMC's shorted shares have dropped massively this month. This website uses cookies to improve your experience. Clovis Oncology, currently the most expensive stock to short, boasts a 109% borrow fee according to data from S3 Partners, a financial analytics firm. S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the companys short interest. Now the stocks short interest is around the same as it was when shares spiked to its all-time high. It wasnt until yesterday, May 27, that it had broken those records. The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. The ten stocks that short sellers had the most conviction and paid the most to short made up 17% of the total borrow cost in the quarter, they were: HOOD (-$79mm), CPNG (-$60mm), LCID (-53mm), IRNT (-$24mm), VMW (-$23mm), FFIE (-$22mm), TSLA (-16mm), CVAC (-$16mm), GREE (-$14mm) and BLNK (-$14mm). S3 Partners LLC: S3 Short Interest and Securities Finance Data - Snowflake 2023 CNBC LLC. Data from S3 Partners showing short interest figures for the first weeks of June indicate that 110.02 million shares were being shorted: Figure 2: AMC's short interest vs. price. Probably the best metric is market cap to revenue. Upgrade to MarketBeat All Access to add more stocks to your watchlist. For short side data and access to our research reports go to https://research.s3partners.com/ . Short interest in the domestic market decreased by -$46.7 billion, or -3.93%, to $1.14 trillion in the third quarter of 2021. - Shorts Think So. Dusaniwsky added, While a stock can be crowded it might not necessarily be a short squeeze candidate. I could not have put it better myself. The so-called short covering could be contributing to AMC's massive rally this week. Other companys on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list. But the chances of getting a tap on the shoulder from a Chief Risk Officer to cut losses and get out of the trade is higher for these stocks. I cover technology companies, worldwide economies and the stock market, A customer gets a bucket of popcorn before seeing, a movie at AMC Town Square. S3 Partners Launches Squeeze Risk Score on SI<GO> Bloomberg Terminal Page No trader will be forced to exit a position that continues to be profitable. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. The "King Of Quants" sees 10X potential Cybersecurity Firm Raises $5M in Five Days. To make matters worse, AMC short sellers have also gotten burned by the stock's 33.2% year-to-date gain. The rising 200-day average is currently near the $14 level, representing potential downside of 60% from current levels. Moving averages are a lagging trend-following indicator that technical analysts use to smooth out price movements and help identify the direction of the current trend in place. Our Crowded Score takes a multi-factor approach to identify short-side crowded securities and take into consideration: Short Interest as a true percentage of a companys tradable float (which includes synthetic longs created by short selling). Mullen Announces New Illegal Shorting Investigation, Mullen Five is Now Available for Reservation, The BBIG Community Raises More Than $42K to Fight Board, Supreme Court Summons FINRA in New MMTLP Hearing, Mullen Makes New Delivery of EVs to UNC Charlotte. Here are the 10 stocks with the highest borrow fees: Related Link: 10 Stocks That Are Crushing Short Sellers In 2023: Where Do Tesla, Apple, Lucid Motors Rank? Down 66%, Is Beyond Meat Stock Finally a Buy? AMC large recent short-side mark-to-market losses have kept it at the top of the league tables for his Short Squeeze Risk Metric. View all of the most shorted stocks. Everything You Need to Know About an AMC Short Squeeze, AMC CEO Reflects on "Meme Stock" Frenzy of 2021. Having a high Squeeze Score does not guarantee that a stock will be squeezed but it does highlight stocks that a have a much higher squeeze potential than most other stocks in the market. GameStop Short Sellers Flee As Short Interest Drops By $880 - Wccftech Short sellers will have to make a decision to either stick to their convictions and remain short despite rising share prices. AMC - Short Interest - AMC Entertainment Holdings Inc Stock - Short Short interest in the domestic market decreased by -$46.7 billion, or -3.93%, to $1.14 trillion in the third quarter of 2021. "FRC shorts are up +$320.3 million in mark-to-market profits on todays -33.9% price move," he wrote. A short interest ratio of 10 or greater indicates strong pessimism about a stock. We have seen the number of highly squeezable stocks in our Squeeze metric since June 15more than double, and our average squeeze score has increased by over 250% (from 12.22 to 31.48). Lets start a discussion. Opinions expressed by Forbes Contributors are their own. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Image: S3 Partners, LLC. This Could Be a Bad Time to Bet Against AMC. Here's Why But they will usually continue to ride the wave until the wave dissipates, or they are forced out by market conditions such as stock recalls or unpalatable stock borrow fees. But the company still has a consistent liquidity position of $1.16 billion. AMC shares currently have a short interest ratio of 4.0. Short Interest Data. S3 Partners estimates AMC short sellers paid a total of $1.91 billion in stock borrow fees in the first quarter of 2023, up from $1.54 billion in the fourth quarter of 2022. . Leave your thoughts below! There is a very high degree of risk involved in investing and trading of securities and similar instruments, and S3 Partners, LLC and any and all entities or individuals affiliated with S3Partners, LLC do not intend to provide or convey any advice or recommendations concerning any such activity, and assume no responsibilities for any trading or investment results. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. At the end of April, 100.63 million shares were being shorted. Investors that short sell a stock are betting that its price will decline in the future. AMC's business fundamentals are at their best levels since the pandemic, but short sellers continue to bet against the stock. All Rights Reserved. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. Please log in to your account or sign up in order to add this asset to your watchlist. Shares of First Republic plunged 43% to a record low a day after the bank released first-quarter earnings, reporting that deposits tanked by more than $100 billion. (Disclaimers: this is not investment advice. TV Shows. All trades, patterns, charts, systems, etc., discussed herein and any product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. Exclusive news, data and analytics for financial market professionals, Reporting by Herbert Lash in New York AMC shares have risen nearly 60% this year-to-date. Overall short sellers paid $1.86 billion in stock borrow fees in the 3rd quarter of 2021 (calculated daily borrow cost using S3s offer rate) versus $2.07 billion in stock borrow expenses in the 2nd quarter of 2021. Highest Borrow Fees: Incredibly, short sellers are currently paying a 168.3% fee to borrow AMC shares, more than double the borrow fee of any other stock, according to S3. However, NASDAQ publishes a report for U.S. stocks, including AMC, twice per month. As far as the company's balance sheet is concerned, free cash flow (FCF) suffered in the first quarter. It became slightly cheaper, on average, to short stocks in the 3rd quarter as the average stock loan fee fell -3 bps from 0.72% fee to 0.69% fee. Is AMC Entertainment's short interest increasing or decreasing? You can now read exclusive FrankNez articles for only $1/mo. As of April 15th, there was short interest totaling 137,470,000 shares, a decline of 1.0% from the previous total of 138,840,000 shares. With its persistent net losses, a recent reverse stock split, massive shareholder dilution and nearly $5 billion in debt, AMC Entertainment Holdings Inc (NYSE:AMC) may seem like an obvious candidate for short selling. If a trader has significant historical profits in a stock; very high conviction in their investment\trading thesis; a technical or quantitative reason to be in a stock; or is very stubborn with a thick skin for enduring mark-to-market losses, they may remain short in a stock despite its high Crowded and Squeeze scores. Over the past week, short bets increased 6% to 5 million shares, worth nearly $200 million. Beyond Meat (BYND) Initiated with a Hold at BMO Capital, 7 Short-Squeeze Stocks That Could Make You Rich, 3 Short-Squeeze Stocks Set for an April Rally, Registration on or use of this site constitutes acceptance of our. Stock Sharks on Instagram: "Passionate day traders glued to their Short interest is typically published by a stock exchange once per month. Is Beyond Meat (BYND) Stock Outpacing Its Consumer Staples Peers This Year? In 2021, AMC shares rose more than 3,000% when it peaked at its all-time high of $72 per share. A short squeeze for AMC Entertainment occurs when it has a large amount of short interest and its stock increases in price. Investors shorting the meme stock AMC Entertainment are estimated to have lost $1.23 billion over the last week as the shares rallied more than 116% since Monday, according to data from S3 Partners. How does a short squeeze work against AMC Entertainment? A Division of NBCUniversal. On Friday, that value stood at around $11.9 billion, according to data from FactSet. Short sellers raise bets against GameStop and AMC to highest level in a You can also follow Frank Nez onTwitter,Instagram,Facebook, orLinkedInfor daily posts. Revenue increased fivefold, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 80%, compared to last year. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. These positions are disclosed in Form 13F filings with the Securities and Exchange Commission. Short interest in the domestic market decreased by -$23.9 billion, or -2.23%, to $1.05 trillion in the fourth quarter of . A buy signal is flashed when the short-term moving average crosses above the longer-term moving average, as happened for AMC in February. AMC has not yet fully recovered from the effects of the pandemic. If AMC manages to decisively hold the 50-day moving average as support, then a rise back to its June peak of about $70 could be in order. The data, which replaces the previously available S3 Rate Temperature, will be provided on a 30-day delay, with real-time data available in S3's BLACK App Excel {APPS BLAX< GO >} and S3's . AMC's new retail investors, who stand at 3.2 million strong, owned about 80% of the company's 450 million outstanding shares as of March 11, AMC reported earlier this month. AMC Entertainment falls 14% as increasing short bets test a key Note that while GameStops fiscal year ended on January 30, 2021, and would normally be labeled fiscal 2021, GameStop calls it fiscal 2020. Learn More on AMC Entertainment's short interest ratio. There were more profitable shorts than unprofitable shorts in the 3rd quarter with 61% of all short positions adding positive numbers to a traders bottom lines. As of the most recent reporting period, the following institutional investors, funds, and major shareholders have reported short positions of AMC Entertainment: Equitec Proprietary Markets LLC, Simplex Trading LLC, Traynor Capital Management Inc., National Bank of Canada FI, FNY Investment Advisers LLC, Parallax Volatility Advisers L.P., Jane Street Group LLC, Belvedere Trading LLC, Sculptor Capital LP, Millennium Management LLC, Marathon Trading Investment Management LLC, Nomura Holdings Inc., Aristeia Capital LLC, Centiva Capital LP, Jefferies Financial Group Inc., Susquehanna International Group LLP, CSS LLC IL, Verition Fund Management LLC, Tyler Stone Wealth Management, 683 Capital Management LLC, Clear Street Markets LLC, Natixis, Antara Capital LP, Barclays PLC, Bank of America Corp DE, EMG Holdings L.P., Bracebridge Capital LLC, Group One Trading L.P., IMC Chicago LLC, Citigroup Inc., Cutler Group LLC CA, Simplex Trading LLC, and Bank of Montreal Can. By downloading any information from s3partners.com your information may be shared with our educational partners or affiliates. GameStop, AMC Short Sellers Lose $12 Billion As Retail - Wccftech Only one sector had a significant increase in short exposure in the 3rd quarter, the Energy sector was up +$4.4 billion. Got a confidential news tip? On the last day of 2019, AMC had a market value of $751.87 million. Other stocks with a 10 out of 10 score are Bed, Bath & Beyond American Consumer News, LLC dba MarketBeat 2010-2023. While a stock can be crowded it might not necessarily be a short squeeze candidate. The number of GameStop shares being shorted was at its peak before retail traders combined to 'short squeeze' the stock, ultimately . Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. AMC Entertainment stock falls again as shorts continue to circle The stocks in our top 25 list all have elevated S3 SI % Float and days-to-cover. Information and observations are obtained from sources believed to be reliable, but S3 Partners, LLC and any of its affiliates do not warrant the completeness or accuracy of any such information, or guarantee or in any way warrant any results from the use of any information. It would not be surprising to see them pull back in the short term, similar to what happened in early February. Short squeeze has not contributed to AMCs recent rise. If you become a successful company you destroy a shorts thesis hence no logical reason to continue shorting. contact@marketbeat.com There was also +$8.8 billion of additional short selling in the quarter as short sellers increased their bets on potential market underperformers. Figure 1:This Could Be a Bad Time to Bet Against AMC. Ihor Dusaniwsky at S3 Partners tracks short interest in stocks in real time, and he posts a number of his charts on Twitter.While AMC's stock was down $0.40 for the day from $26.52 to $26.12 . The latest AMC short interest data from Morningstar indicates an increase in shorted shares. You seem like a nice guy Ihor, but let's not pretend ANYONE's short interest data is even remotely accurate. When it gets above 70, and it is currently at 86.81, they are overbought. We'll assume you're ok with this, but you can opt-out if you wish. We have seen the number of highly squeezable stocks in our Squeeze metric since June 15more than double, and our average squeeze score has increased by over 250% (from 12.22 to 31.48). Even though the overall market was relatively flat (S&P 500 up +0.23%, Nasdaq down -0.38% and Russell 3000 down -0.43%), the majority of this decrease, -$55.5 . FCF was negative $300 million. Combined with retail buying pressure, an AMC short squeeze today is highly probable. This has allowed AMC's management to go beyond simply recovering its business. In fact, AMC reported the best first quarter in the last two years. See what's happening in the market right now with MarketBeat's real-time news feed. AMC short interest and stock price. With the huge spike in AMCs shares they are definitely in overbought territory. S3 Partners, which calculates real-time short interest in the market, expects the squeeze to continue.
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