No trader will be forced to exit a position that continues to be profitable. AMC stock highest borrow fee S3 Partners - Franknez.com. He speaks with Alix Steel on "Bloomberg: The Open . A new note from S3 Partners highlights why short-selling AMC may not be worth the cost. "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. The stock tested a key support level on Wednesday, as it traded around its 50-day moving average at $37.28. To short a stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. 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. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. A Division of NBCUniversal. 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. But the company still has a consistent liquidity position of $1.16 billion. 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. A new note from S3 Partners highlights why short-selling AMC may not be worth the cost. At its peak, the stock reached $36.72 a share. And before Covid-19 impacted business the companys market cap was about $750 million. I could not have put it better myself. The S3 SI % Float, which includes the synthetic long shares created by every short sale in the denominator, fell -25 bps over the quarter, from 4.82% to 4.57%. S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the companys short interest. That's an uptick from 49.53 million in mid-September. Note that while GameStops fiscal year ended on January 30, 2021, and would normally be labeled fiscal 2021, GameStop calls it fiscal 2020. The recovery of AMC's business fundamentals has been aided by cash raised through share appreciation by retail investors. AMC was the most active stock on the New York Stock Exchange by far on Friday as more than 650 million shares changed hands. Thanks for supporting Wall Street Memes). The difference between the sell price and the buy price is the trader's profit. While a substantially large . The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. S3 Partners, which calculates real-time short interest in the market, expects the squeeze to continue. All Rights Reserved. Do Analysts' Price Targets Make Domino's Pizza Stock Look Tasty? Exclusive news, data and analytics for financial market professionals, Reporting by Herbert Lash in New York Over the past week, short bets increased 6% to 5 million shares, worth nearly $200 million. , Beyond Meat, Nikola, Skillz, Upstart Holdings and Virgin Galactic Our platform connects, collects, and cleans position data across the total trade life cycle for any portfolio. Please log in to your account or sign up in order to add this asset to your watchlist. Combined with retail buying pressure, an AMC short squeeze today is highly probable. Get daily stock ideas from top-performing Wall Street analysts. To see all exchange delays and terms of use please see Barchart's disclaimer. Opinions expressed by Forbes Contributors are their own. Before Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash flows two of the three previous years. 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 . Now the stocks short interest is around the same as it was when shares spiked to its all-time high. It's now trading at 25 timesEBITDA right now and it's in aworse position today with thechanged industry. See, AMC stocks short interest data is a recipe for a short squeeze, something similar to what occurred in January and June of 2021. Other companys on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list. At time of publication, AMC was trading below the key support level at $35.27. Reese also said that bets against AMC's business have been based on retail investor fatigue. There was also +$8.8 billion of additional short selling in the quarter as short sellers increased their bets on potential market underperformers. AMC shares have risen nearly 60% this year-to-date. Data from S3 partners reveal the AMC's shorted shares have dropped massively this month. 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. 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 billion, came from mark-to-market depreciation of the shorted securities. Traders typically short a company, in anticipation its share price will decline, by borrowing stock. As AMC tests its key 50-day moving average support level, short bets against the company are increasing, according to data from S3 partners. AMC Entertainment (AMC) - Get Free Reportcontinues to be a major target for short-selling activity. Some of the factors in it are short sale liquidity, trading liquidity, financing liquidity and mark-to-market profit and losses. But AMC isn't the only stock costing short sellers an arm and a leg. Unify your firm's cash with your prime and custody wallets by seamlessly integrating our solution with your own OMS. 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. Despite the company showing signs of recovery from the COVID pandemic, short sellers continue to bet against its stock. Export data to Excel for your own analysis. 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. These positions are disclosed in Form 13F filings with the Securities and Exchange Commission. When calculating the companys valuation metrics these results use fiscal 2018s $8.3 billion in revenue so as to be as generous as possible. Accept Read More. 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. He continued, A short position, no matter how crowded, that continues to be profitable cannot be squeezed. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. Dusaniwsky has developed a Short Squeeze score and ranks AMC s and GameStops metric a 10 out of 10 for a short squeeze. Short exposure continues to be concentrated in several sectors: Information Technology ($258 billion), Consumer Discretionary ($211 billion) and Health Care ($168 billion). Shares rose from $2 to more than $20 per share in January and from $9 to more than $72 per share later in June. 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. Get drawn at the end of the year for holiday giveaways. AMC Entertainment (NYSE:AMC) has become the #1 stock with the highest borrow fees according to S3 Partners. American Consumer News, LLC dba MarketBeat 2010-2023. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher. While the interest rate is not cumulative, todays high interest cripples shorts and gives buyers runway for big volume to make a greater impact than it did last year when the fees were extremely low and could suppress shares from rising. Dusaniwsky has developed a Short Squeeze score and ranks AMCs metric a 10 out of 10 for a short squeeze. As Aron said, it is not enough for AMC to return to pre-pandemic levels to prove a successful business. 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. On the last day of 2019, AMC had a market value of $751.87 million. AMC Entertainment has enough short sellers to create big buying pressure in a buy back when closing short positions. Other stocks with a 10 out of 10 score are Bed, Bath & Beyond - AMC Enter Hldgs (NYSE:AMC) BBBY SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. All rights reserved. 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. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. Even with the Reddit crowd targeting AMC for months, and a surging stock price, the company's short interest remains high at around 20% of outstanding shares, according to data from S3 Partners . Tesla Continues to Defy Expectations, Is it Buyable Again? Supply is dwindling. 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. 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. 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. Ihor Dusaniwsky, S3 Partners Head of Predictive Analytics, discusses AMC stock sale and short interest. SPCE Learn More. Why the stock could round trip: Valuation. The number comes from an algorithm he created and is not subjective. MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy. 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. It traded at seven times EBITDApre-pandemic. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Introduction. But it's getting close to reaching pre-pandemic levels. New York, NY 10022, 2022 S3partners.com All Rights Reserved. The "King Of Quants" sees 10X potential Cybersecurity Firm Raises $5M in Five Days. Get short term trading ideas from the MarketBeat Idea Engine. Our daily ratings and market update email newsletter. He added, While a stock can be crowded it might not necessarily be a short squeeze candidate. However, as well as mentioning the box office success of Top Gun: Maverick as an indication of AMC's improving business, she sent a message to short sellers: "As an industry play, it doesn't seem like it's a great time to short.". You seem like a nice guy Ihor, but let's not pretend ANYONE's short interest data is even remotely accurate. Get this delivered to your inbox, and more info about our products and services. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. 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? AMC's business has been under extreme duress. Probably the best metric is market cap to revenue. We want to hear from you. Before Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash . Investors that short sell a stock are betting . To make matters worse, AMC short sellers have also gotten burned by the stock's 33.2% year-to-date gain. 2023 CNBC LLC. Ihor Dusaniwsky at S3 Partners tracks short interest in stocks in real time, and he posts a number of his charts on Twitter.While AMC's stock was down $0.40 for the day from $26.52 to $26.12 . 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 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. How often is AMC Entertainment's short interest reported? Down 66%, Is Beyond Meat Stock Finally a Buy? Which institutional investors are shorting AMC Entertainment? The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. In the last quarter alone, AMC's revenues reached 65% of pre-pandemic levels. 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. 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. There were 9,551 shorted equities with positive P\L, producing +$96.6 billion in profits, +14.4%. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. Get 30 Days of MarketBeat All Access Free, By creating a free account, you agree to our. Id love to know your thoughts leave a comment down below. 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. He speaks with Bloomberg's Matt Miller on "Bloomberg Markets." (Source: Bloomberg) A short position, no matter how crowded, that continues to be profitable cannot be squeezed. Franknez.com is the media site that keeps retail investors informed. 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. . 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. Information and observations are obtained from sources believed to be reliable, but S3 Partners, LLC and any of its affiliates do not warrant the completeness or accuracy of any such information, or guarantee or in any way warrant any results from the use of any information. Exciting results also came from its food and beverage business, which generated $252.2 million in revenue a fivefold year-over-year increase. 86% of retail CFD accounts lose money, Beyond Meat hosts conference call for investors, Short Interest Sector Focus: Consumer Defensive Sector. AMC Entertainment Is Most Expensive Stock For Short Sellers, But What Other Stocks Top The List? As of the most recent reporting period, the following institutional investors, funds, and major shareholders have reported short positions of AMC Entertainment: Equitec Proprietary Markets LLC, Simplex Trading LLC, Traynor Capital Management Inc., National Bank of Canada FI, FNY Investment Advisers LLC, Parallax Volatility Advisers L.P., Jane Street Group LLC, Belvedere Trading LLC, Sculptor Capital LP, Millennium Management LLC, Marathon Trading Investment Management LLC, Nomura Holdings Inc., Aristeia Capital LLC, Centiva Capital LP, Jefferies Financial Group Inc., Susquehanna International Group LLP, CSS LLC IL, Verition Fund Management LLC, Tyler Stone Wealth Management, 683 Capital Management LLC, Clear Street Markets LLC, Natixis, Antara Capital LP, Barclays PLC, Bank of America Corp DE, EMG Holdings L.P., Bracebridge Capital LLC, Group One Trading L.P., IMC Chicago LLC, Citigroup Inc., Cutler Group LLC CA, Simplex Trading LLC, and Bank of Montreal Can. AMC shares currently have a short interest ratio of 4.0. FCF was negative $300 million. In fact, AMC reported the best first quarter in the last two years. (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%). Shares of the movie theater chain rallied more than 116% since Monday. GameStop may be able to shake up its business enough to recover at least some of downturn but it wont happen overnight. The indicators, strategies, columns, articles and all other features herein are for informational and educational purposes only and should not be construed as investment advice. Shares of First Republic plunged 43% to a record low a day after the bank released first-quarter earnings, reporting that deposits tanked by more than $100 billion. Plus500. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. S3 looked at stocks with at least $100 million in short interest and ranked them by their stock borrow fees. Before you get any more clout - let's just be transparent here and acknowledge S3 is owned by Citadel. In every recent quarter, the company has shown gradual improvement.

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