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. 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. 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. Our Crowded Score takes a multi-factor approach to identify short-side crowded securities and take into consideration: Short Interest as a true percentage of a companys tradable float (which includes synthetic longs created by short selling). If you become a successful company you destroy a shorts thesis hence no logical reason to continue shorting. 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. Thanks to this combination of improving fundamentals and growth efforts, AMC is slowly changing. Other companys on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list. "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 Sharks on Instagram: "Passionate day traders glued to their Figure 1:This Could Be a Bad Time to Bet Against AMC. Our daily ratings and market update email newsletter. Short Interest Data. Lemonides mentioned that "there's been too much confidence among the shorts that these businesses are completely failed.". The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. Not surprisingly, AMC was the most expensive stock to short in the first quarter, costing short sellers $225 million in stock borrow fees. Here are the 10 stocks with the highest borrow fees: Related Link: 10 Stocks That Are Crushing Short Sellers In 2023: Where Do Tesla, Apple, Lucid Motors Rank? Opinions expressed by Forbes Contributors are their own. With Fed Decision Looming, Economy and Markets Wait Google Stock Concerned About AI? On Twitter, Adam Aron responded directly to a user regarding AMCs short thesis. 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). Image: S3 Partners, LLC. The latest GameStop short interest data from mid-October indicated that 20% of GME's float - 53.88 million shares - was held short. AMC short interest and stock price. AMC shares have risen nearly 60% this year-to-date. All Rights Reserved. This is@CEOAdamstrategy and the only strategy that has ever worked in the history of the market! In-depth profiles and analysis for 20,000 public companies. A short position, no matter how crowded, that continues to be profitable cannot be squeezed. 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 . Please log in to your account or sign up in order to add this asset to your watchlist. The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. The retail investors' agenda has been to keep AMC alive and to "stick it" to the hedge funds, one analyst told CNBC. While retail investors keep trying to defeat short-sellers by provoking short squeezes, the company's management is trying to prove to the bears that AMC is more than just a meme. . For AMC, the picture for the short-seller is far bleaker than the one for GameStop. New York, NY 10022, 2022 S3partners.com All Rights Reserved. How often is AMC Entertainment's short interest reported? 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 number of GameStop shares being shorted was at its peak before retail traders combined to 'short squeeze' the stock, ultimately . Learn More on AMC Entertainment's short interest ratio. Sign up for our newsletter to get the inside scoop on what traders are talking about delivered daily to your inbox. 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. Id love to know your thoughts leave a comment down below. And finally, all these stocks have incurred double digit percentage mark-to-market losses over the last 30 days coupled with mark-to-market losses over the last seven days. 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. The latest report on AMC short interest from S3 Partners indicates that $3.40B of short interest is outstanding and the number of shares shorted is up 6.16% from a week ago. Short interest in the domestic market decreased by -$46.7 billion, or -3.93%, to $1.14 trillion in the third quarter of 2021. S3 Analytics: 3rd Quarter Short Interest by Sector Recap No representation or implication is being made that using the methodology or system will generate profits or ensure freedom from losses. 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%. 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. The shares closed at $26.12 per share Friday, up from $13.68 on Monday. AMC Entertainment falls 14% as increasing short bets test a key 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. 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'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. Data is a real-time snapshot *Data is delayed at least 15 minutes. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use. Our Standards: The Thomson Reuters Trust Principles. Also, the article may contain affiliate links. Clovis Oncology, currently the most expensive stock to short, boasts a 109% borrow fee according to data from S3 Partners, a financial analytics firm. (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). 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. 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. AMCs short interest came down to 14% after the surge but began to rise again all throughout 2022. Got a confidential news tip? Short Interest and Securities Finance Data - Access the only independent Short Interest and Securities Finance data set available. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. At its peak, the stock reached $36.72 a share. AMC share price gets cut in half as reality sets in for meme - CNBC See what's happening in the market right now with MarketBeat's real-time news feed. Investors shorting the meme stock AMC Entertainment are estimated to have lost $1.23 billion over the last week. 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. Learn More. This just defies all logic.". AMC CEO's Fortune Has Jumped Over $120 Million Amid Reddit-Trader Push AMC stock highest borrow fee S3 Partners - Franknez.com. 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%. Which institutional investors are shorting AMC Entertainment? AMCs short interest per S3 Partners and Ortex data is nearly identical. (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%). Leave your thoughts below! 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. But the company still has a consistent liquidity position of $1.16 billion. (844) 978-6257. All rights reserved. BBBY 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. Is United Airlines Playing a Game of Limbo with Its Guidance? Other stocks with a 10 out of 10 score are Bed, Bath & Beyond It's now trading at 25 timesEBITDA right now and it's in aworse position today with thechanged industry. You have already added five stocks to your watchlist. You must independently assess the risk of any investment or trading activity and make your own independent decisions regarding any securities mentioned herein. Down 66%, Is Beyond Meat Stock Finally a Buy? But the chances of getting a tap on the shoulder from a Chief Risk Officer to cut losses and get out of the trade is higher for these stocks. 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. S3 Analytics: 2022 Amazon.com Rally? The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. 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. However, NASDAQ publishes a report for U.S. stocks, including AMC, twice per month. AMC Entertainment Is Most Expensive Stock For Short Sellers, But What Other Stocks Top The List? Fees Adding Up: S3 estimates short sellers paid a total of $1.91 billion in stock borrow fees in the first quarter of 2023, up from $1.54 billion in the fourth quarter of 2022. Exclusive news, data and analytics for financial market professionals, Reporting by Herbert Lash in New York 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. , Beyond Meat, Nikola, Skillz, Upstart Holdings and Virgin Galactic A new note from S3 Partners highlights why short-selling AMC may not be worth the cost. As Aron said, it is not enough for AMC to return to pre-pandemic levels to prove a successful business. A decrease on short sale volume suggests bullish (positive) sentiment. The latest AMC short interest data from Morningstar indicates an increase in shorted shares. It would not be surprising to see them pull back in the short term, similar to what happened in early February. Grupo Televisa, S.A.B. 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. An additional variable, which is necessary for a short squeeze to occur, are substantial net-of-financing mark-to-market losses. Which the shorts have definitely seen this week. 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. Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast, [BREAKING] New "Living Missile" to Replace Nuclear Missiles, Getting Started With Options Trading Has Never Been So Easy. AMC's business has been under extreme duress. 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). Short sellers will have to make a decision to either stick to their convictions and remain short despite rising share prices. Short sellers betting against AMC suffered $2 billion in losses . To see all exchange delays and terms of use please see Barchart's disclaimer. Short sellers are betting that a stock will decline in price. The most recent reporting period available is April, 15 2023. For short side data and access to our research reports go to https://research.s3partners.com/ . All Rights Reserved. Watch S3 Partners' Dusaniwsky on AMC - Bloomberg Get 30 Days of MarketBeat All Access Free, By creating a free account, you agree to our. What is a good short interest ratio for AMC Entertainment? All signspoint to an AMC short squeeze this year. S3 Partners estimates AMC short sellers paid a total of $1.91 billion in stock borrow fees in the first quarter of 2023, up from $1.54 billion in the fourth quarter of 2022. . No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. The recovery of AMC's business fundamentals has been aided by cash raised through share appreciation by retail investors. Learn More on AMC Entertainment's current short interest. When calculating the companys valuation metrics these results use fiscal 2018s $8.3 billion in revenue so as to be as generous as possible. S3 Partners LLC: S3 Short Interest and Securities Finance Data - Snowflake S3 Analytics: Kraft Heinz (KHC) Short Interest $1.47 S3 Analytics: January 13th January 19th Best S3 Analytics: Chipotle Shorts up $261 million on $GME Stock Slides As Short-Squeeze Rallies Start To S3 Analytics: Stock Loan Implications of VXX ETNs S3 Analytics: Under Armour Swings and Misses on S3 Analytics: Februarys Most & Least Profitable Short S3 Analytics: McPlant Burger Not Tasty for Beyond Meat Shorts. 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. Everything You Need to Know About an AMC Short Squeeze, AMC CEO Reflects on "Meme Stock" Frenzy of 2021. Here are the top 13 stocks with the highest . S3 data reports AMCs borrow fee at 142.57% but Ortex is reporting 213.95%. 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. Their efforts, which surged in January, pushed the stock to $20 a share, up from $5, and allowed AMC to lighten its debt load by around $600 million. On the last day of 2019, AMC had a market value of $751.87 million. Recap using Fridays stock price of $248.36: Dusaniwskys chart on GameStop is available via his tweet. - AMC Enter Hldgs (NYSE:AMC) Investors that short sell a stock are betting . AMC Short Sellers Recover $1 Billion In Little Over A Week - Wccftech He speaks with Bloomberg's Matt Miller on "Bloomberg Markets." (Source: Bloomberg) A new note from S3 Partners highlights why short-selling AMC may not be worth the cost. Get short term trading ideas from the MarketBeat Idea Engine. The difference between the sell price and the buy price is the trader's profit. Is AMC Entertainment's short interest increasing or decreasing? Plus500. 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. 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. Short interest is typically published by a stock exchange once per month. I could not have put it better myself. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. Even though the overall market was relatively flat (S&P 500 up +0.23%, Nasdaq down -0.38% and Russell 3000 down -0.43%), the majority of this decrease, -$55.5 . No trader will be forced to exit a position that continues to be profitable. 2023 CNBC LLC. 2023 S3 Partners, LLC. GameStops valuation also doesnt make sense. Which stocks are the most shorted right now? At time of publication, AMC was trading below the key support level at $35.27. Year to date shorts positions in First Republic are up $971.8 million, according to Dusaniwsky. Last quarter alone, revenue grew 8.5 times over the same period of the previous year. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Graphite is used to build batteries. With the Russell 3000 down only -0.43% for the quarter, short sellers outperformed the market significantly by being good stock pickers. Some of the factors in it are short sale liquidity, trading liquidity, financing liquidity and mark-to-market profit and losses. Researcher and operations manager at DM Martins Research. And before Covid-19 impacted business the companys market cap was about $750 million. GameStop, AMC Short Sellers Lose $12 Billion As Retail - Wccftech We want to hear from you. 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. Before you get any more clout - let's just be transparent here and acknowledge S3 is owned by Citadel. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. . S3 looked at stocks with at least $100 million in short interest and ranked them by their stock borrow fees . 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. AMC - Short Interest - AMC Entertainment Holdings Inc Stock - Short By the end of May, that number had grown to 109.83 million shares. These partnerships do not influence editorial content. The industry leader for online information for tax, accounting and finance professionals. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. 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. Dusaniwsky added, While a stock can be crowded it might not necessarily be a short squeeze candidate. S3 Partners LLC. 1,359 likes, 60 comments - Stock Sharks (@stocksharks) on Instagram: "Passionate day traders glued to their Reddit message boards have found their new favorite . All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher. Read More . 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. For stock market, business news and updates,join the newsletterto receive weekly market news and notifications straight to your inbox. Is the 149% Dividend for ZIM Integrated Shipping in Jeopardy? The data, which replaces the previously available S3 Rate Temperature, will be provided on a 30-day delay, with real-time data available in S3's BLACK App Excel {APPS BLAX< GO >} and S3's . 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. 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. In fact, AMC reported the best first quarter in the last two years. AMC Entertainment saw a drop in short interest in the month of April. 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. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. What is AMC Entertainment's current short interest? 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. Opinions expressed by Forbes Contributors are their own. The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. Despite the company showing signs of recovery from the COVID pandemic, short sellers continue to bet against its stock. , 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%. First Republic Bank short positions turn profitable for month -S3 AMC Entertainment (NYSE:AMC) has become the #1 stock with the highest borrow fees according to S3 Partners. Get daily stock ideas from top-performing Wall Street analysts. 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.