Though the company ended the first quarter with $1 billion in liquidity, the most it's ever had in its 100-year history, that cash will only keep it afloat through 2022 unless audiences return in droves to make up for months of no revenue. Get daily stock ideas from top-performing Wall Street analysts. The forced buying tends to fuel the rally even further. An additional variable which is necessary for a short squeeze to occur is substantial net-of-financing mark-to-market losses. But AMC isn't the only stock costing short sellers an arm and a leg. 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. Keep in mind that the stocks previous all-time high had been around $27 in March 2015 and January 2017. This breakthrough stock has bright future this decade. 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. The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. When calculating the companys valuation metrics these results use fiscal 2018s $8.3 billion in revenue so as to be as generous as possible. When it gets above 70, and it is currently at 86.81, they are overbought. Identify stocks that meet your criteria using seven unique stock screeners. 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. Indeed, according to S3 Partners Research, through early December . Reese also said that bets against AMC's business have been based on retail investor fatigue. Is United Airlines Playing a Game of Limbo with Its Guidance? In-depth profiles and analysis for 20,000 public companies. 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. For stock market, business news and updates,join the newsletterto receive weekly market news and notifications straight to your inbox. Short sellers betting against AMC suffered $2 billion in losses . View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. Last quarter alone, revenue grew 8.5 times over the same period of the previous year. Data from S3 partners reveal the AMC's shorted shares have dropped massively this month. Do Analysts' Price Targets Make Domino's Pizza Stock Look Tasty? Is AMC Entertainment's short interest increasing or decreasing? The data reveals that GameStop's short interest currently stands at $1.76 billion after it dropped by $880 million in just two weeks following the short sellers' recovery . No trader will be forced to exit a position that continues to be profitable. 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). It would not be surprising to see them pull back in the short term, similar to what happened in early February. 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. 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. 326 E 8th St #105, Sioux Falls, SD 57103 The retail investors' agenda has been to keep AMC alive and to "stick it" to the hedge funds, one analyst told CNBC. They are now transforming AMC into a growth company. Id love to know your thoughts leave a comment down below. By clicking Sign up, you agree to receive marketing emails from Insider Our platform connects, collects, and cleans position data across the total trade life cycle for any portfolio. 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. Lets start a discussion. (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%). Short interest in shares of beleaguered First Republic Bank 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 . 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). You must independently assess the risk of any investment or trading activity and make your own independent decisions regarding any securities mentioned herein. S3 Analytics: 3rd Quarter Short Interest by Sector Recap. The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. High stock borrow fees can test the conviction level of short sellers as financing costs can take a large bite out of expected Alpha. "High stock borrow fees can test the conviction level of short sellers as financing costs can take a large bite out of expected Alpha," S3 analyst Ihor Dusaniwsky said. 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. Our Standards: The Thomson Reuters Trust Principles. Ihor Dusaniwsky at S3 Partners tracks short interest in stocks in real time, and he posts a number of his charts on Twitter. Real-time analyst ratings, insider transactions, earnings data, and more. In fact, AMC reported the best first quarter in the last two years. 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%. Everything You Need to Know About an AMC Short Squeeze, AMC CEO Reflects on "Meme Stock" Frenzy of 2021. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. AMC's theaters also saw a total attendance of 39 million last quarter, which was four times larger than it was in the same period in 2021. 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. An increase in short sale volume suggests bearish (negative) sentiment among investors. Combined with retail buying pressure, an AMC short squeeze today is highly probable. A Division of NBCUniversal. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Related Link: Are Hedge Fund Short Sellers Hunting And Targeting Specific Bank Stocks? All Rights Reserved. What is AMC Entertainment's current short interest? Editing by Matthew Lewis, First Republic collapse sparks regional bank shares sell-off, JPMorgan wins government auction to buy seized First Republic Bank, Exclusive: Subway comes up with debt plan to clinch $10 billion-plus sale, Explainer: Why First Republic Bank failed and what JPMorgan's deal means, All eyes on Lyft's new CEO as Wall Street awaits turnaround plan, IMF's Georgieva says more vulnerabilities in banking sector may be exposed, Brazil police shoot dead 4 illegal gold miners on Yanomami reservation, India cuts windfall tax on petroleum crude, Options traders remain wary of regional banks after First Republic rescue. There were 6,195 shorted equities with negative P\L, producing -$49.4 billion in losses, -9.8%. THE USE BY SHORTSIGHT.COM OF ANY TRADEMARKED MATERIAL, INCLUDING ANY LOGOS OR COMPANY NAMES, DOES NOT IMPLY ANY AFFILIATION BY SHORTSIGHT.COM WITH THEIR RESPECTIVE HOLDERS OR ENDORSEMENT BY THEIR RESPECTIVE HOLDERS OF ANY INFORMATION OR OPINIONS PRESENTED ON SHORTSIGHT.COM. Learn More on AMC Entertainment's short interest ratio. 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%. 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 CEO's Fortune Has Jumped Over $120 Million Amid Reddit-Trader Push "They will never generate cashwith their current capitalstructure. 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. 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%). 13 Stocks That Rank As Most Expensive to Short, Data Show - Markets Insider 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. A short squeeze for AMC Entertainment occurs when it has a large amount of short interest and its stock increases in price. You can now read exclusive FrankNez articles for only $1/mo. You can also follow Frank Nez onTwitter,Instagram,Facebook, orLinkedInfor daily posts. Short interest is typically published by a stock exchange once per month. AMC shares have risen nearly 60% this year-to-date. For AMC, the picture for the short-seller is far bleaker than the one for GameStop. But the company still has a consistent liquidity position of $1.16 billion. 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. S3 Partners LLC: S3 Short Interest and Securities Finance Data - Snowflake 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. All Rights Reserved. Traders typically short a company, in anticipation its share price will decline, by borrowing stock. If you become a successful company you destroy a shorts thesis hence no logical reason to continue shorting. Joe, you nailed it. AMC's Stock Set Up For A Short Squeeze - Forbes 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. A stock borrow fee is a fee charged by a brokerage to short sellers who borrow shares of stock. You seem like a nice guy Ihor, but let's not pretend ANYONE's short interest data is even remotely accurate. BBBY Thank you for all your help. Plus500. Throughout 2022, AMC was one of the preferred stocks to short - and it turned out to be a great investment for short-sellers. At the current valuation AMCs shares are 12.7 times more expensive than 2017s valuation level. 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. but BLNK short sellers were still up +35% in the 3rd quarter even after paying away -13% is stock borrow financing costs. 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. Leave your thoughts below! The latest GameStop short interest data from mid-October indicated that 20% of GME's float - 53.88 million shares - was held short. He speaks with Alix Steel on "Bloomberg: The Open . AMC short sellers dealt massive $1.2 billion blow after stock rally - CNBC