Short sellers have been covering some of their Tilray short positions over the last week. With shares shorted down 292k shares, -7.72%, as Tilray’s stock price declined by 14.24% over that same time period. Shares shorted are 3.49 million shares, $287 million of Short Interest. This is the lowest level of shares shorted since early December.
This has taken a lot of pressure off the stock loan market and stock borrow rates have responded accordingly – stock borrow rates on outstanding short positions have dropped by 9,650 bps and are now hovering around the 113% fee range, Rates should continue to plunge as inventory levels rise, we are seeing rates as low as 30% fee today, a far cry from the 900% intra-day fee levels we saw two weeks ago. We may see short interest go up soon, as shorts sellers who were scared off by the high cost of borrow may jump in at these lower levels.
Tilray shorts are up $35.4 million in mark-to-market profits over the last week, +11.52%, but are still down $325 million year-to-date.
Want deeper insight into the above analysis?
Managing Director Predictive Analytics, S3 Partners, LLC
For more information on S3’s reporting, data and analytics solutions, email us at email@example.com. Start your free trial of the BLACK App – the only source of real-time short interest on the Bloomberg Terminal or Thomson Reuters Eikon.
For short side data and access to our research reports go to https://shortsight.com/ .