They are now transforming AMC into a growth company. Export data to Excel for your own analysis. When a heavily shorted stock jumps higher in a rapid fashion, short sellers are forced to buy back borrowed shares to close out their short position and cut losses. Changes in short volume can be used to identify positive and negative investor sentiment. AMC Entertainment (NYSE:AMC) has become the #1 stock with the highest borrow fees according to S3 Partners. These positions are disclosed in Form 13F filings with the Securities and Exchange Commission. Do Analysts' Price Targets Make Domino's Pizza Stock Look Tasty? Tesla Continues to Defy Expectations, Is it Buyable Again? Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Sign up to receive the latest short interest report for AMC Entertainment and its competitors with MarketBeat's FREE newsletter. The recovery of AMC's business fundamentals has been aided by cash raised through share appreciation by retail investors. 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. AMC shares are trading down $0.09 today. 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. Mark-to-market losses are the primary impetus for a Short Squeeze to occur, and AMCs recent rally has pushed it into potential Short Squeeze territory.. For short side data and access to our research reports go to https://research.s3partners.com/ . 1,359 likes, 60 comments - Stock Sharks (@stocksharks) on Instagram: "Passionate day traders glued to their Reddit message boards have found their new favorite . S3 Partners LLC. Short sellers have now lost grip as the cost to short the stock has dramatically increased. 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. See here for a complete list of exchanges and delays. Short interest in the domestic market decreased by -$46.7 billion, or -3.93%, to $1.14 trillion in the third quarter of 2021. Surprisingly, these were three of the four sectors with the largest increase in short interest in the 2nd quarter of this year. NEW YORK, April 25 (Reuters) - Short interest in shares of beleaguered First Republic Bank (FRC.N) rose by $389.8 million to $945.5 million in the past 30 days, and the bearish positions turned profitable for the month as its shares skidded on Tuesday, data from S3 Partners showed. Get daily stock ideas from top-performing Wall Street analysts. 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. New York, NY 10022, 2022 S3partners.com All Rights Reserved. In the top section of the chart below is the stocks Relative Strength Index or RSI. 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. Instead, management is seeking new avenues for growth beyond the entertainment business. 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). Exciting results also came from its food and beverage business, which generated $252.2 million in revenue a fivefold year-over-year increase. 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. To remove the impact of Covid-19 lets use 2018s and 2019s revenue, which are essentially the same, of $5.47 billion and Fridays market cap of $21.6 billion (compared to $11.8 billion last Friday). CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. 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. , Beyond Meat, Nikola, Skillz, Upstart Holdings and Virgin Galactic (Photo by Ethan Miller/Getty Images), chart on GameStop is available via his tweet, There is a large amount of dollars at risk on the short side (high short interest), There is a large proportion of a securitys tradable float shorted (high S3 SI % Float), There is scarcity of stock loan supply (high stock borrow fees), There is limited daily trading volume (high days to cover), AMC short interest is $4.53 billion of $21.6 billion market cap, Shortsare now down $3.91 billion in year-to-date mark-to-market losses, This includes up $302 million on Fridays decline of 6.7%, Shorts are down $1.99 billion or 52%, last week, Dec. 31, 2017: $1.58 billion with $5.08 billion in revenue = 0.31x market cap to revenue, Dec. 31, 2018: $1.48 billion with $5.46 billion in revenue = 0.27x market cap to revenue, Dec. 31, 2019: $747 million with $5.47 billion in revenue = 0.14x market cap to revenue, Dec. 31, 2020: $248 million with $1.24 billion in revenue = 0.20x market cap to revenue, GME short interest is $2.99 billion of $17.6 billion market cap, Shortsare still down $6.77 billion in year-to-date mark-to-market losses, This includes up $114 million on Fridays decline of 3.8%, Shorts are down $294 million or 10%, last week, Fiscal 2021 revenue: $5.43 billion estimate, Fiscal 2022 revenue: $5.37 billion estimate, GameStop has a market cap of $17.6 billion, Which is 13.8 times greater than December 31, 2020s market cap of $1.3 billion, And 2.1x market cap to fiscal 2018s revenue. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. Short squeeze has not contributed to AMCs recent rise. As of April 15th, investors have sold 137,470,000 shares of AMC short. Other companys on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list. AMC's short interest was only at 23% when buyers were able to squeeze a percent of short sellers from the play, sending share prices to their all-time high of $72. "FRC shorts are now profitable in April, up +$195.0 million in month-to-date mark-to-market profits.". 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. How does a short squeeze work against AMC Entertainment? Here's Why, (Read more from Wall Street Memes: MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy). What we do know is that CEO Adam Aron plans to tackle the short thesis fundamentally. 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. 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. No trader will be forced to exit a position that continues to be profitable. This is@CEOAdamstrategy and the only strategy that has ever worked in the history of the market! Before Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash flows two of the three previous years. GameStops valuation also doesnt make sense. But there were several sectors with some movement. (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%). What does it mean to sell short AMC Entertainment stock? View all of the most shorted stocks. Due to the limited stock borrow availability, SPAC stock loan rates in the Miscellaneous sector continued to be the most expensive sector to short with rates rising +49 bps from 5.21% to 5.70%. But according to Charles Lemonides, portfolio manager at ValueWorks, there is likely to be a pause in the aggressive short-selling of meme stocks. The stocks in our top 25 list all have elevated S3 SI % Float and days-to-cover. In fact, the short interest in many of these speculative names has gone up in recent weeks, according to data firm S3 Partners. To make matters worse, AMC short sellers have also gotten burned by the stock's 33.2% year-to-date gain. AMC Entertainment At the current valuation AMCs shares are 12.7 times more expensive than 2017s valuation level. 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. For stock market, business news and updates,join the newsletterto receive weekly market news and notifications straight to your inbox. Please log in to your account or sign up in order to add this asset to your watchlist. BBBY Gary Gensler, Ken Griffin: Involved in Audit Quality Scheme? Please add MMTLP to your list, and GTII, and GNS. 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. 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. See here for a complete list of exchanges and delays. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. The most profitable shorted sectors were Consumer Discretionary (+8.25%) and Materials (+7.21%) while the least profitable shorted sectors were Energy (-1.51%) and Financials (-1.11%). You must independently assess the risk of any investment or trading activity and make your own independent decisions regarding any securities mentioned herein. You have already added five stocks to your watchlist. You seem like a nice guy Ihor, but let's not pretend ANYONE's short interest data is even remotely accurate. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer. A new note from S3 Partners highlights why short-selling AMC may not be worth the cost. Some of the factors in it are short sale liquidity, trading liquidity, financing liquidity and mark-to-market profit and losses. In the last quarter alone, AMC's revenues reached 65% of pre-pandemic levels. contact@marketbeat.com 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). 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. 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. Access your favorite topics in a personalized feed while you're on the go. The so-called short covering could be contributing to AMC's massive rally this week. We want to hear from you. 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. AMC Entertainment has enough short sellers to create big buying pressure in a buy back when closing short positions. 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. The most recent reporting period available is April, 15 2023. As far as the company's balance sheet is concerned, free cash flow (FCF) suffered in the first quarter. Joe, you nailed it. The five largest short-side winners in the 3rd quarter were: BABA (+$3.93bn), AMC (+(1.42bn), ZM (+$1.32bn), NIO (+$1.06bn), W (+$964mm). With the Russell 3000 down only -0.43% for the quarter, short sellers outperformed the market significantly by being good stock pickers. Short Interest and Securities Finance Data - Access the only independent Short Interest and Securities Finance data set available. But a stock's decline below its 50-day moving average does not mean a swift decline back to its 200-day moving average is in order. - AMC Enter Hldgs (NYSE:AMC) The forced buying tends to fuel the rally even further. At its peak, the stock reached $36.72 a share. 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. Mark-to-market losses are the primary impetus for a Short Squeeze to occur, and AMCs recent rally has pushed it into potential Short Squeeze territory.. He speaks with Bloomberg's Matt Miller on "Bloomberg Markets." (Source: Bloomberg) Grupo Televisa, S.A.B. 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. 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. With the huge spike in AMCs shares they are definitely in overbought territory. Image: S3 Partners, LLC. The market is rampant with blatant stealing from retail investors and driving companies down illegally. You can now read exclusive FrankNez articles for only $1/mo. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. When it gets above 70, and it is currently at 86.81, they are overbought. S3 Analytics: 2022 Amazon.com Rally? An additional variable, which is necessary for a short squeeze to occur, are substantial net-of-financing mark-to-market losses., He continued, A short position, no matter how crowded, that continues to be profitable cannot be squeezed. The rally cooled off late Friday after AMC's stock skyrocketed as much as 38% during early morning trading. Learn More on AMC Entertainment's short interest ratio. American Consumer News, LLC dba MarketBeat 2010-2023. There were 9,551 shorted equities with positive P\L, producing +$96.6 billion in profits, +14.4%. 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. Ihor Dusaniwsky at S3 Partners tracks short interest in stocks in real time, and he posts a number of his charts on Twitter. Plus500. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. With 450 million shares outstanding, the entire company changed hands nearly 1.5 times during Friday's trading. Sign up for our newsletter to get the inside scoop on what traders are talking about delivered daily to your inbox. The number comes from an algorithm he created and is not subjective. He added, While a stock can be crowded it might not necessarily be a short squeeze candidate. Wedbush analyst Alicia Reese, who is a bear on AMC stock at the moment because of its valuation, said that the increase in short interest in AMC is occurring at a time when the fundamentals of the company are improving. Ihor Dusaniwsky, S3 Partners. Graphite is used to build batteries. Supply is dwindling. Its 30-day trading volume average is just above 100 million shares, according to FactSet. AMCs short interest per S3 Partners and Ortex data is nearly identical. 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. Changes in short volume can be used to identify positive and negative investor sentiment. S3 data reports AMCs borrow fee at 142.57% but Ortex is reporting 213.95%. The latest GameStop short interest data from mid-October indicated that 20% of GME's float - 53.88 million shares - was held short. Image: S3 Partners, LLC. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. In-depth profiles and analysis for 20,000 public companies. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher. 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. Ron, It matters and it matters even more when shills comment negatively towards AMC, 100% agree. 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. FCF was negative $300 million. 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. In every recent quarter, the company has shown gradual improvement. AMCs short interest came down to 14% after the surge but began to rise again all throughout 2022. Thanks to this combination of improving fundamentals and growth efforts, AMC is slowly changing. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. (Photo by Ethan Miller/Getty Images), AMC stock price (right axis) and number of shares, There is a large amount of dollars at risk on the short side (high short interest), There is a large proportion of a securitys tradable float shorted (high S3 SI % Float), There is scarcity of stock loan supply (high stock borrow fees), There is limited daily trading volume (high days to cover). Dusaniwsky estimates that 89.6 million shares are shorted or 20% of the 448 million shares. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use. While a stock can be crowded it might not necessarily be a short squeeze candidate. What is a good short interest ratio for AMC Entertainment? On Twitter, Adam Aron responded directly to a user regarding AMCs short thesis. 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. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Lemonides mentioned that "there's been too much confidence among the shorts that these businesses are completely failed.". Recap using Fridays stock price of $248.36: Dusaniwskys chart on GameStop is available via his tweet. MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy. As Aron said, it is not enough for AMC to return to pre-pandemic levels to prove a successful business. Get drawn at the end of the year for holiday giveaways. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. See what's happening in the market right now with MarketBeat's real-time news feed. 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. High stock borrow fees can test the conviction level of short sellers as financing costs can take a large bite out of expected Alpha. However, even when these criteria are met it does not necessarily mean the stock is a short squeeze candidate. . 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. Managing Director of Predictive Analytics, S3 Partners, Director of Predictive Analytics, S3 Partners. Which stocks are the most shorted right now? 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. At some point in time reality should catch up what can easily be called an overvalued stock. 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%. This website uses cookies to improve your experience. Despite the company showing signs of recovery from the COVID pandemic, short sellers continue to bet against its stock. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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 typically short a company, in anticipation its share price will decline, by borrowing stock. 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. After a 40% Drop, Analysts Remain Bullish on Impinj, Visa Charges Higher After Better-Than-Expected Q2 Report, onsemi Puts A Bottom in Chip Stocks, Heads For New Highs, Checkpoint Software Leads Cyber-Security Stocks. Accept Read More. "All that reallymatters here long term, thiscompany is never going to makecash again," Rich Greenfield, co-founder of LightShed Partners, said Friday morning on CNBC's "Squawk Box." Dusaniwsky has developed a Short Squeeze score and ranks AMCs metric a 10 out of 10 for a short squeeze. This just defies all logic.". Thank you for all your help. As AMC tests its key 50-day moving average support level, short bets against the company are increasing, according to data from S3 partners. 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. Shares of the movie theater chain rallied more than 116% since Monday. 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. INTELLECTUAL PROPERTY NOTICES: PRODUCT AND COMPANY NAMES USED HEREIN, OTHER THAN SHORTSIGHT.COM, MAY BE TRADEMARKS OR REGISTERED TRADEMARKS OF THEIR RESPECTIVE HOLDERS. Over the past week, short bets increased 6% to 5 million shares, worth nearly $200 million. There was also +$8.8 billion of additional short selling in the quarter as short sellers increased their bets on potential market underperformers. June 4, 2021: $21.6 billion with $5.47 billion in revenue = 3.9x market cap to revenue. #AMC#AMCSqueeze.. 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. Short interest is the volume of AMC Entertainment shares that have been sold short but have not yet been covered or closed out. For AMC, the picture for the short-seller is far bleaker than the one for GameStop. He continued, A short position, no matter how crowded, that continues to be profitable cannot be squeezed. This breakthrough stock has bright future this decade. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Short sellers are betting that a stock will decline in price. Shares rose from $2 to more than $20 per share in January and from $9 to more than $72 per share later in June. "They will never generate cashwith their current capitalstructure. This has allowed AMC's management to go beyond simply recovering its business. I could not have put it better myself. 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. 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. BLNK is the only stock to be in the top ten for two quarters in a row, financing costs have reduced their mark-to-market profits. A new note from S3 Partners highlights why short-selling AMC may not be worth the cost. Reese also said that bets against AMC's business have been based on retail investor fatigue. No trader will be forced to exit a position that continues to be profitable. 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. On the last day of 2019, AMC had a market value of $751.87 million. 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. Everything You Need to Know About an AMC Short Squeeze, AMC CEO Reflects on "Meme Stock" Frenzy of 2021. This forces short sellers to cover their short interest positions by buying actual shares of AMC, which in turn drives the price of the stock up even further. Our Blacklight SaaS platform and Black App provides an up-to-date view of short selling and short covering on an equity, sector, index, or country-wide basis allowing investors\traders to better manage their existing long and short positions. Short interest stands . Dusaniwsky added, While a stock can be crowded it might not necessarily be a short squeeze candidate. 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. A short squeeze for AMC Entertainment occurs when it has a large amount of short interest and its stock increases in price. That's an uptick from 49.53 million in mid-September. But AMC isn't the only stock costing short sellers an arm and a leg. All Rights Reserved. Only one sector had a significant increase in short exposure in the 3rd quarter, the Energy sector was up +$4.4 billion. Short interest in the domestic market decreased by -$46.7 billion, or -3.93%, to $1.14 trillion in the third quarter of 2021. By downloading any information from s3partners.com your information may be shared with our educational partners or affiliates. All quotes delayed a minimum of 15 minutes. S3 Analytics: 3rd Quarter Short Interest by Sector Recap. Exclusive news, data and analytics for financial market professionals, Reporting by Herbert Lash in New York Note that while GameStops fiscal year ended on January 30, 2021, and would normally be labeled fiscal 2021, GameStop calls it fiscal 2020. Clovis Oncology, currently the most expensive stock to short, boasts a 109% borrow fee according to data from S3 Partners, a financial analytics firm. Unify your firm's cash with your prime and custody wallets by seamlessly integrating our solution with your own OMS. This short interest tracker provides a variety of short interest related data, sourced from a variety of partners. Investors that short sell a stock are betting . All signspoint to an AMC short squeeze this year. Short positions in First Republic Bank now account for 32.5% of its stock available to trade.
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