(Disclaimers: this is not investment advice. Over the past week, short bets increased 6% to 5 million shares, worth nearly $200 million. Is United Airlines Playing a Game of Limbo with Its Guidance? Short sellers made $14.3 billion in paper profit from their bearish bets on global banking stocks in March, according to analytics firm S3 Partners, as the collapse of U.S. lender Silicon Valley Bank. 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. See here for a complete list of exchanges and delays. Theaters were closed for several months to help stop the spread of the virus, and when the company reopened its doors, few consumers felt comfortable attending screenings, and movie studios held back new releases. Here are the top 13 stocks with the highest . The indicators, strategies, columns, articles and all other features herein are for informational and educational purposes only and should not be construed as investment advice. AMC shares are trading down $0.09 today. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. The user said, Shorts attack companies they feel they can destroy. . This has allowed AMC's management to go beyond simply recovering its business. While AMC short-sellers are down more than $3 billion in 2021 on a mark-to-market basis, that could soon reverse if AMC breaks below its 50-day moving average and trends towards its 200-day moving average. At one point it hit $36.72, which was 204% above last Fridays close. The recovery of AMC's business fundamentals has been aided by cash raised through share appreciation by retail investors. On the last day of 2019, AMC had a market value of $751.87 million. Short interest is the volume of AMC Entertainment shares that have been sold short but have not yet been covered or closed out. Only one sector had a significant increase in short exposure in the 3rd quarter, the Energy sector was up +$4.4 billion. And before Covid-19 impacted business the companys market cap was about $750 million. Exciting results also came from its food and beverage business, which generated $252.2 million in revenue a fivefold year-over-year increase. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. S3 Analytics: 2022 Amazon.com Rally? Surprisingly, these were three of the four sectors with the largest increase in short interest in the 2nd quarter of this year. See here for a complete list of exchanges and delays. Shares rose from $2 to more than $20 per share in January and from $9 to more than $72 per share later in June. Before Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash . An additional variable which is necessary for a short squeeze to occur is substantial net-of-financing mark-to-market losses. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. At the current valuation AMCs shares are 12.7 times more expensive than 2017s valuation level. The retail investors' agenda has been to keep AMC alive and to "stick it" to the hedge funds, one analyst told CNBC. In 2021, AMC shares rose more than 3,000% when it peaked at its all-time high of $72 per share. High stock borrow fees can test the conviction level of short sellers as financing costs can take a large bite out of expected Alpha. Franknez.com is the media site that keeps retail investors informed. The "King Of Quants" sees 10X potential Cybersecurity Firm Raises $5M in Five Days. We'll assume you're ok with this, but you can opt-out if you wish. Reese also said that bets against AMC's business have been based on retail investor fatigue. There was also +$8.8 billion of additional short selling in the quarter as short sellers increased their bets on potential market underperformers. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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 LLC. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. You must independently assess the risk of any investment or trading activity and make your own independent decisions regarding any securities mentioned herein. Everything You Need to Know About an AMC Short Squeeze, AMC CEO Reflects on "Meme Stock" Frenzy of 2021. All Rights Reserved. January 3, 2022. Opinions expressed by Forbes Contributors are their own. The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. Co-producer of The Street's financial channels: Apple Maven, Amazon Maven and Wall Street Memes. All Rights Reserved. A Division of NBCUniversal. 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. The forced buying tends to fuel the rally even further. Keep in mind that the stocks previous all-time high had been around $27 in March 2015 and January 2017. Here is how the short interest of companies in the sector of "consumer discretionary" compare to AMC Entertainment: Cinemark Holdings, Inc. (25.76%), Grupo Televisa, S.A.B. These partnerships do not influence editorial content. Get short term trading ideas from the MarketBeat Idea Engine. But AMC isn't the only stock costing short sellers an arm and a leg. Short Interest and Securities Finance Data - Access the only independent Short Interest and Securities Finance data set available. Revenue increased fivefold, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 80%, compared to last year. Is Beyond Meat (BYND) Stock Outpacing Its Consumer Staples Peers This Year? American Consumer News, LLC dba MarketBeat 2010-2023. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. As of the most recent reporting period, the following stocks had the largest short interest positions: T-Mobile US, Inc. ($4.69 billion), Occidental Petroleum Co. ($3.22 billion), Coinbase Global, Inc. ($2.54 billion), T. Rowe Price Group, Inc. ($2.33 billion), Paramount Global ($2.10 billion), Verisk Analytics, Inc. ($2.03 billion), Etsy, Inc. ($1.67 billion), Old Dominion Freight Line, Inc. ($1.62 billion), CarMax, Inc. ($1.60 billion), and Extra Space Storage Inc. ($1.60 billion). GameStops valuation also doesnt make sense. The recent rally off the June 16 lows (S&P 500 +5.36%, Nasdaq +7.57%, Russell 3000 +5.42%) has made some crowded shorts more squeezable. The latest GameStop short interest data from mid-October indicated that 20% of GME's float - 53.88 million shares - was held short. But the company still has a consistent liquidity position of $1.16 billion. contact@marketbeat.com Note that while GameStops fiscal year ended on January 30, 2021, and would normally be labeled fiscal 2021, GameStop calls it fiscal 2020. I could not have put it better myself. 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. "They will never generate cashwith their current capitalstructure. Get daily stock ideas from top-performing Wall Street analysts. How often is AMC Entertainment's short interest reported? There were 9,551 shorted equities with positive P\L, producing +$96.6 billion in profits, +14.4%. The rising 200-day average is currently near the $14 level, representing potential downside of 60% from current levels. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Exclusive news, data and analytics for financial market professionals, Reporting by Herbert Lash in New York Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Grupo Televisa, S.A.B. 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. Not surprisingly, AMC was the most expensive stock to short in the first quarter, costing short sellers $225 million in stock borrow fees. Opinions expressed by Forbes Contributors are their own. Although short interest is now nowhere near the exaggerated levels that preceded January 2021's historic rally, data from S3 Partners shows that short interest in both GameStop and AMC . Traders view the the 50-day moving average, which is the average daily closing price of a stock over its previous 50 trading sessions, as a short-term moving average that often represents areas of support or resistance for a stock. Identify stocks that meet your criteria using seven unique stock screeners. Short sellers betting against AMC suffered $2 billion in losses . Other company's on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list.. AMC's high short interest of 25.33% has short sellers in a sticky situation as rising borrow fee rates limit the amount of shorting in the stock. 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 . 1,359 likes, 60 comments - Stock Sharks (@stocksharks) on Instagram: "Passionate day traders glued to their Reddit message boards have found their new favorite . as well as other partner offers and accept our, begin to capitulate on the meme-stock frenzy, Registration on or use of this site constitutes acceptance of our. No trader will be forced to exit a position that continues to be profitable. Short selling is a costly, risky endeavor, but investors can also use this list of stocks with high borrow fees as a guide of which stocks to potentially avoid holding in a long portfolio as well. Short sellers will have to make a decision to either stick to their convictions and remain short despite rising share prices. Ihor Dusaniwsky at S3 Partners tracks short interest in stocks in real time, and he posts a number of his charts on Twitter. Short interest in GameStop as a percentage of the company's float declined to 12.3% in August, according to MarketBeat, drastically lower than a high level of 141% in January, according to S3 Partners. When calculating the companys valuation metrics these results use fiscal 2018s $8.3 billion in revenue so as to be as generous as possible. The most recent reporting period available is April, 15 2023. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. As the chart below shows the number of shares being shorted fell significantly in late January (the gold line) when the stock had its initial pop due to wallstreetbets Reddit crowd jumping in. You seem like a nice guy Ihor, but let's not pretend ANYONE's short interest data is even remotely accurate. With 450 million shares outstanding, the entire company changed hands nearly 1.5 times during Friday's trading. As Aron said, it is not enough for AMC to return to pre-pandemic levels to prove a successful business. 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. Supply is dwindling. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use. This breakthrough stock has bright future this decade. 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. Now the stocks short interest is around the same as it was when shares spiked to its all-time high. AMC Entertainment S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the companys short interest. Lemonides mentioned that "there's been too much confidence among the shorts that these businesses are completely failed.". MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy. At its peak, the stock reached $36.72 a share. Short sellers have covered about 796,000 shares, worth $41 million, over the last 30 days, with buy-to-covers growing over the last week with 1.40 million covered, worth $72 million., Why the stock could round trip: Valuation. 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). Short squeeze has not contributed to AMCs recent rise. 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. Dusaniwsky has developed a Short Squeeze score and ranks AMCs metric a 10 out of 10 for a short squeeze. Related Link: Are Hedge Fund Short Sellers Hunting And Targeting Specific Bank Stocks? But a single trading day above its 50-day moving average is no sure-signal that AMC stock will continue to trend higher, as declining momentum indicators like the Relative Strength Index suggest fewer buyers are stepping in to support the stock than in previous weeks and months. This is@CEOAdamstrategy and the only strategy that has ever worked in the history of the market! By downloading any information from s3partners.com your information may be shared with our educational partners or affiliates. Short interest stands . Duolingo Speaking Volumes: Forms Bullish Chart Ahead of Earnings, Skip Charts & View Short Interest History. 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. AMC surge slaps short sellers with $1.3B loss, AMC's stock soaring has nothing to do with a short-squeeze: LightShed's Greenfield, AMC to lighten its debt load by around $600 million. Also, the article may contain affiliate links. In the top section of the chart below is the stocks Relative Strength Index or RSI. 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. AMCs high short interest of 25.33% has short sellers in a sticky situation as rising borrow fee rates limit the amount of shorting in the stock. Changes in short volume can be used to identify positive and negative investor sentiment. 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 . View all of the most shorted stocks. He speaks with Bloomberg's Matt Miller on "Bloomberg Markets." (Source: Bloomberg) The number comes from an algorithm he created and is not subjective. AMC has around 18% of its float shares sold short, versus about 5% for an average U.S. stock, according to data from S3 Partners. While a substantially large . Is AMC Entertainment's short interest increasing or decreasing? A short squeeze for AMC Entertainment occurs when it has a large amount of short interest and its stock increases in price. Leave your thoughts below! S3 Partners founder Robert Sloan examines the short-selling activity surrounding AMC and the top short-squeeze risks. However, even when these criteria are met it does not necessarily mean the stock is a short squeeze candidate. 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. Our daily ratings and market update email newsletter. (0.77%), Spectrum Brands Holdings, Inc. (4.39%), Mister Car Wash, Inc. (15.31%), Steven Madden, Ltd. (5.25%), Sonos, Inc. (10.34%), Carter's, Inc. (7.52%), Graham Holdings (1.21%), Ozon Holdings PLC (8.94%), Kontoor Brands, Inc. (7.33%). They are now transforming AMC into a growth company. AMCs short borrow fee rate has skyrocketed in the past months but is now reaching record highs. Please add MMTLP to your list, and GTII, and GNS. Read More . Stonk-O-Tracker is currently reporting the borrow fee at 102% but recently showed hedge funds were paying as much as 731% to short AMC stock. An increase in short sale volume suggests bearish (negative) sentiment among investors. At time of publication, AMC was trading below the key support level at $35.27. On Friday, that value stood at around $11.9 billion, according to data from FactSet. Benzinga's Take: The willingness for short sellers to pay these crazy high fees is a reflection of the strong conviction they have in their downside theses for the stocks mentioned. On Twitter, Adam Aron responded directly to a user regarding AMCs short thesis. The latest report on AMC short interest from S3 Partners indicates that $3.40B of short interest is outstanding and the number of shares shorted is up 6.16% from a week ago. Ihor Dusaniwsky, managing director of Predictive Analytics at S3, in an email exchange with Reuters said First Republic's plunge has moved short sellers in its stock into a profit for April. View which stocks are hot on social media with MarketBeat's trending stocks report. While the interest rate is not cumulative, todays high interest cripples shorts and gives buyers runway for big volume to make a greater impact than it did last year when the fees were extremely low and could suppress shares from rising. FCF was negative $300 million. S3 Analytics: 3rd Quarter Short Interest by Sector Recap. One sign traders look for to generate a buy or sell signal is the crossover between the shorter 50-day and longer 200-day moving averages. How does a short squeeze work against AMC Entertainment? As of April 15th, there was short interest totaling 137,470,000 shares, a drop of 1.0% from the previous total of 138,840,000 shares. A buy signal is flashed when the short-term moving average crosses above the longer-term moving average, as happened for AMC in February. He added, While a stock can be crowded it might not necessarily be a short squeeze candidate. Get drawn at the end of the year for holiday giveaways. A decrease on short sale volume suggests bullish (positive) sentiment. To short a stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Dusaniwsky added, While a stock can be crowded it might not necessarily be a short squeeze candidate. It's now trading at 25 timesEBITDA right now and it's in aworse position today with thechanged industry. 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. While retail investors keep trying to defeat short-sellers by provoking short squeezes, the company's management is trying to prove to the bears that AMC is more than just a meme. Other stocks with a 10 out of 10 score are Bed, Bath & Beyond Over the past week, short bets increased 6% to 5 . Sign up for our newsletter to get the inside scoop on what traders are talking about delivered daily to your inbox. Short selling AMC is an investing strategy that aims to generate trading profit from AMC Entertainment as its price is falling. S3 looked at stocks with at least $100 million in short interest and ranked them by their stock borrow fees . Upgrade to MarketBeat All Access to add more stocks to your watchlist. Fees Adding Up: S3 estimates 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. Its 30-day trading volume average is just above 100 million shares, according to FactSet. Stock borrows are tight in most of these stocks with only six trading at General Collateral levels and twelve are trading at above 10% fee levels. No trader will be forced to exit a position that continues to be profitable. Short sellers are betting that a stock will decline in price. In fact, AMC reported the best first quarter in the last two years. Changes in short volume can be used to identify positive and negative investor sentiment. AMC Entertainment (AMC) - Get Free Reportcontinues to be a major target for short-selling activity. When it gets above 70, and it is currently at 86.81, they are overbought. The data is organized by frequency of updates, with intraday data at the top (short shares availability, short borrow fee rate), daily data (short volume, fails-to-deliver) in the middle, and the slowest updated data (short interest) at the bottom. AMC Entertainment has enough short sellers to create big buying pressure in a buy back when closing short positions. S3 looked at stocks with at least $100 million in short interest and ranked them by their stock borrow fees. Ihor Dusaniwsky at S3 Partners tracks short interest in stocks in real time, and he posts a number of his charts on Twitter. Figure 1:This Could Be a Bad Time to Bet Against AMC. 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 . New York, NY 10022, 2022 S3partners.com All Rights Reserved. These positions are disclosed in Form 13F filings with the Securities and Exchange Commission. Affiliates of S3 Partners, LLC may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies or information. AMCs short interest came down to 14% after the surge but began to rise again all throughout 2022. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. An additional variable, which is necessary for a short squeeze to occur, are substantial net-of-financing mark-to-market losses. Which the shorts have definitely seen this week. Short interest in the domestic market decreased by -$46.7 billion, or -3.93%, to $1.14 trillion in the third quarter of 2021. Year to date shorts positions in First Republic are up $971.8 million, according to Dusaniwsky. We want to hear from you. 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. Clovis Oncology, currently the most expensive stock to short, boasts a 109% borrow fee according to data from S3 Partners, a financial analytics firm. No trader will be forced to exit a position that continues to be profitable. According to CEO Adam Aron, the future of AMC's cash management will consist of supporting its core business operations, repaying high-interest loans, and also investing in growth initiatives. Shares of the movie theater chain rallied more than 116% since Monday.
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