Goldman Sachs Group Inc (GS US) down $15.58 per share, or -7%, on weakness in the financial sector and news that Malaysia is looking to recoup nearly $600 million in fees and commissions paid for $6.5 billion in bond deals for its state fund 1MDB. 1MDB is in the news for embezzlement and money laundering suspicions.
GS short interest is at $898 million, the second largest short in the Investment Banking & Brokerage sector behind Charles Schwab (SCHW US) with $906 million in short interest. Share shorted are 4.03 million, down 700k shares or 15% since the beginning of November. Short interest as a % of available float is 1.22%.
Today’s price drop earned G.S. short sellers $64 million in mark-to-market profits, bringing year-to-date profits to $245 million, a 20.6% year-to-date return. With GS hitting lows it hasn’t seen since November 2016, we expect continued short selling in the stock in anticipation of further news regarding the 1MDB claw back.
Want deeper insight into the above analysis?
Contact: Ihor.Dusaniwsky@S3Partners.net
Managing Director Predictive Analytics, S3 Partners, LLC
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