Should You Be Too? Throughout 2022, AMC was one of the preferred stocks to short - and it turned out to be a great investment for short-sellers. The number comes from an algorithm he created and is not subjective. Ihor Dusaniwsky, S3 Partners. American Consumer News, LLC dba MarketBeat 2010-2023. Leave your thoughts below! In fact, the short interest in many of these speculative names has gone up in recent weeks, according to data firm S3 Partners. Market wide Short Interest as a % of Float declined moderately in the 3rd quarter, decreasing -28 bps from 5.33% to 5.05%. 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. All quotes delayed a minimum of 15 minutes. Opinions expressed by Forbes Contributors are their own. On Friday, that value stood at around $11.9 billion, according to data from FactSet. AMCs short interest per S3 Partners and Ortex data is nearly identical. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Ron, It matters and it matters even more when shills comment negatively towards AMC, 100% agree. To put this into context, fellow meme stock AMC Entertainment has a short interest . Before Covid-19 derailed the U.S. and worldwide economies GameStop was slowly losing revenue from fiscal 2016 to 2018 then had a sharp drop-off in fiscal 2019 (ended in January 2020). 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. AMC's business has been under extreme duress. 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. 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. Indeed, according to S3 Partners Research, through early December . Keep in mind that the stocks previous all-time high had been around $27 in March 2015 and January 2017. Surprisingly, these were three of the four sectors with the largest increase in short interest in the 2nd quarter of this year. It's now trading at 25 timesEBITDA right now and it's in aworse position today with thechanged industry. The S3 SI % Float, which includes the synthetic long shares created by every short sale in the denominator, fell -25 bps over the quarter, from 4.82% to 4.57%. Changes in short volume can be used to identify positive and negative investor sentiment. AMC 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. The rising 200-day average is currently near the $14 level, representing potential downside of 60% from current levels. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use. In the last quarter alone, AMC's revenues reached 65% of pre-pandemic levels. 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. No trader will be forced to exit a position that continues to be profitable. 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. 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. Its 30-day trading volume average is just above 100 million shares, according to FactSet. 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 . 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). All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher. #AMC#AMCSqueeze.. What is AMC Entertainment's current short interest? We'll assume you're ok with this, but you can opt-out if you wish. AMC shares currently have a short interest ratio of 4.0. 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. 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. 2023 S3 Partners, LLC. 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. The shares closed at $26.12 per share Friday, up from $13.68 on Monday. Please add MMTLP to your list, and GTII, and GNS. Not surprisingly, AMC was the most expensive stock to short in the first quarter, costing short sellers $225 million in stock borrow fees. Revenue increased fivefold, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 80%, compared to last year. The data, which comes courtesy of S3 Partners, LLC, reveals that during midday trading on Friday, year to date losses of AMC short sellers stood at $3.74 billion. At one point it hit $36.72, which was 204% above last Fridays close. 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. At some point in time reality should catch up what can easily be called an overvalued stock. AMC Entertainment However, even when these criteria are met it does not necessarily mean the stock is a short squeeze candidate. Short Interest Data. Shares of AMC Entertainment dropped as much as 14% on Wednesday as retail traders begin to capitulate on the meme-stock frenzy and short bets against the theater chain increase. Introduction. 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. An increase in short sale volume suggests bearish (negative) sentiment among investors. It would not be surprising to see them pull back in the short term, similar to what happened in early February. Tesla Continues to Defy Expectations, Is it Buyable Again? Recap using Fridays stock price of $248.36: Dusaniwskys chart on GameStop is available via his tweet. Please log in to your account or sign up in order to add this asset to your watchlist. 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. A short position, no matter how crowded, that continues to be profitable cannot be squeezed. View which stocks are hot on social media with MarketBeat's trending stocks report. 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. AMC Entertainment (NYSE:AMC) has become the #1 stock with the highest borrow fees according to S3 Partners. Get 30 Days of MarketBeat All Access Free, By creating a free account, you agree to our. Opinions expressed by Forbes Contributors are their own. 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 Miscellaneous (primarily SPACs) sector has the largest SI % Float at 9.59% and Consumer Discretionary (6.45%) was the only other sector over 6%. When it gets above 70, and it is currently at 86.81, they are overbought. "They will never generate cashwith their current capitalstructure. There were 9,551 shorted equities with positive P\L, producing +$96.6 billion in profits, +14.4%. FAANG stocks were up an average of +27.3% in 2021 but Amazon.com Inc (AMZN) underperformed the group significantly with only . How often is AMC Entertainment's short interest reported? Management has done an excellent job in reversing the troubling FCF of the 2020, when AMC reported a negative cash flow of $1.27 billion. The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. At its peak, the stock reached $36.72 a share. The most recent reporting period available is April, 15 2023. In the top section of the chart below is the stocks Relative Strength Index or RSI. 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. Learn More on AMC Entertainment's short interest ratio. It has around $5 billion in debt and needed to defer $450 million in lease repayments as its revenue largely dried up during the ongoingcoronavirus pandemic. S3 Partners, which calculates real-time short interest in the market, expects the squeeze to continue. Data from S3 partners reveal the AMC's shorted shares have dropped massively this month. Sign up for our newsletter to get the inside scoop on what traders are talking about delivered daily to your inbox. AMCs short borrow fee rate has skyrocketed in the past months but is now reaching record highs. The industry leader for online information for tax, accounting and finance professionals. Get drawn at the end of the year for holiday giveaways. The company's management considers itself "balance sheet" managers, and they intend to seek out businesses in various segments that are financially fragile and replicate their expertise for a gain for both parties. Exciting results also came from its food and beverage business, which generated $252.2 million in revenue a fivefold year-over-year increase. SPCE However, NASDAQ publishes a report for U.S. stocks, including AMC, twice per month. But the company still has a consistent liquidity position of $1.16 billion. AMC short interest and stock price. AMCs short borrow fee is a serious pressure cooker as it incentivizes shorts to close their positions more so as movie theatre shares continue to rise. View all of the most shorted stocks. As AMC tests its key 50-day moving average support level, short bets against the company are increasing, according to data from S3 partners. Franknez.com is the media site that keeps retail investors informed. Lyft Inc's revenue growth is likely to lag bigger rival Uber Technologies Inc for the sixth straight quarter, with Wall Street eagerly looking forward to a turnaround plan from its new CEO David Risher. Learn More on AMC Entertainment's current short interest. Only one sector had a significant increase in short exposure in the 3rd quarter, the Energy sector was up +$4.4 billion. 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 . Our daily ratings and market update email newsletter. Your use of any information or observations contained herein is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of such information or observations. You seem like a nice guy Ihor, but let's not pretend ANYONE's short interest data is even remotely accurate. Lets start a discussion. - Shorts Think So. AMC Entertainment saw a drop in short interest in the month of April. A short interest ratio of 10 or greater indicates strong pessimism about a stock. Dusaniwsky wrote, We have seen AMC short covering this week, but by no means are we seeing a wholesale short squeeze in this stock at the moment. This short interest tracker provides a variety of short interest related data, sourced from a variety of partners. All signspoint to an AMC short squeeze this year. MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy. 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. Get daily stock ideas from top-performing Wall Street analysts. TV Shows. 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. Some of the factors in it are short sale liquidity, trading liquidity, financing liquidity and mark-to-market profit and losses. Upgrade to MarketBeat All Access to add more stocks to your watchlist. 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). No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the companys short interest. The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. . 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. The stock tested a key support level on Wednesday, as it traded around its 50-day moving average at $37.28. 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. The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. It wasnt until yesterday, May 27, that it had broken those records. Let's find out why that's a bad idea. , symbol AMC, more than doubled over the past five trading days moving from $12.08 last Friday to close at $26.12 today, up 116%. With 450 million shares outstanding, the entire company changed hands nearly 1.5 times during Friday's trading. Access your favorite topics in a personalized feed while you're on the go. Over the past week, short bets increased 6% to 5 million shares, worth nearly $200 million. (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%). On Twitter, Adam Aron responded directly to a user regarding AMCs short thesis. S3 Analytics: 3rd Quarter Short Interest by Sector Recap. 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. (Disclaimers: this is not investment advice. Last quarter alone, revenue grew 8.5 times over the same period of the previous year. Our Standards: The Thomson Reuters Trust Principles. Thanks to this combination of improving fundamentals and growth efforts, AMC is slowly changing. This has allowed AMC's management to go beyond simply recovering its business. Another moving average traders will likely have their eye on if AMC falls below its 50-day is the longer-term 200-day moving average. "FRC shorts are now profitable in April, up +$195.0 million in month-to-date mark-to-market profits.". As AMC tests its key 50-day moving average support level, short bets against the company are increasing, according to data from S3 partners. In 2021, AMC shares rose more than 3,000% when it peaked at its all-time high of $72 per share. 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). 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. The higher chance that short sellers may be forced to buy-to-cover will only help push stock prices even higher and making the Squeeze even tighter for the shorts still in the stock. 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. Here's Why, (Read more from Wall Street Memes: MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy). Short exposure continues to be concentrated in several sectors: Information Technology ($258 billion), Consumer Discretionary ($211 billion) and Health Care ($168 billion). The highest stock borrow fees, as of September 30th, for stocks with over $100 million of short interest were: Short sellers were up +$47.2 billion in 3rd quarter mark-to-market profits, +4.02%. Short interest is typically published by a stock exchange once per month. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. 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. January 3, 2022. You have already added five stocks to your watchlist. No trader will be forced to exit a position that continues to be profitable. 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