The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. For short side data and access to our research reports go to https://research.s3partners.com/ . Over the past week, short bets increased 6% to 5 million shares, worth nearly $200 million. All signspoint to an AMC short squeeze this year. For AMC, the picture for the short-seller is far bleaker than the one for GameStop. Research Note written by Ihor Dusaniwsky, Managing Director of Predictive Analytics, S3 Partners, LLC, For deeper insight into short side data and analysis contact me at Ihor.Dusaniwsky@S3Partners.com. #AMC#AMCSqueeze.. While AMCs stock was down $0.40 for the day from $26.52 to $26.12, for the week Dusaniwsky estimates that shorts lost over $1.2 billion and since the beginning of the year have lost over $1.9 billion. After a 40% Drop, Analysts Remain Bullish on Impinj, Visa Charges Higher After Better-Than-Expected Q2 Report, onsemi Puts A Bottom in Chip Stocks, Heads For New Highs, Checkpoint Software Leads Cyber-Security Stocks. 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. (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). 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. June 4, 2021: $21.6 billion with $5.47 billion in revenue = 3.9x market cap to revenue. Short selling AMC is an investing strategy that aims to generate trading profit from AMC Entertainment as its price is falling. 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. A Division of NBCUniversal. The market is rampant with blatant stealing from retail investors and driving companies down illegally. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. AMC Entertainment Is Most Expensive Stock For Short Sellers, But What Other Stocks Top The List? Short sellers have now lost grip as the cost to short the stock has dramatically increased. Which stocks are the most shorted right now? Last quarter alone, revenue grew 8.5 times over the same period of the previous year. To remove the impact of Covid-19 lets use 2018s and 2019s revenue, which are essentially the same, of $5.47 billion and Fridays market cap of $21.6 billion (compared to $11.8 billion last Friday). Image: S3 Partners, LLC. FAANG stocks were up an average of +27.3% in 2021 but Amazon.com Inc (AMZN) underperformed the group significantly with only . But it's getting close to reaching pre-pandemic levels. High stock borrow fees can test the conviction level of short sellers as financing costs can take a large bite out of expected Alpha. However, NASDAQ publishes a report for U.S. stocks, including AMC, twice per month. See here for a complete list of exchanges and delays. Short sellers betting against AMC suffered $2 billion in losses . 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. For stock market, business news and updates,join the newsletterto receive weekly market news and notifications straight to your inbox. There were 9,551 shorted equities with positive P\L, producing +$96.6 billion in profits, +14.4%. A short squeeze for AMC Entertainment occurs when it has a large amount of short interest and its stock increases in price. 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. . How high the stock will jump to is unknown. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher. 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. 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. 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. 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 . This website uses cookies to improve your experience. Managing Director of Predictive Analytics, S3 Partners, Director of Predictive Analytics, S3 Partners. What is a good short interest ratio for AMC Entertainment? S3 Partners founder Robert Sloan examines the short-selling activity surrounding AMC and the top short-squeeze risks. Image: S3 Partners, LLC. In every recent quarter, the company has shown gradual improvement. He added, While a stock can be crowded it might not necessarily be a short squeeze candidate. All quotes delayed a minimum of 15 minutes. Why AMC Stock Could Be A Ticking Time Bomb For Short Sellers At Current Year to date shorts positions in First Republic are up $971.8 million, according to Dusaniwsky. Why the stock could round trip: Valuation. While the movie theater business is rebounding, AMC is still facing strong headwinds. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Is AMC Entertainment's short interest increasing or decreasing? An increase in short sale volume suggests bearish (negative) sentiment among investors. Investors that short sell a stock are betting . 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. Opinions expressed by Forbes Contributors are their own. The latest AMC short interest data from Morningstar indicates an increase in shorted shares. S3 looked at stocks with at least $100 million in short interest and ranked them by their stock borrow fees . Export data to Excel for your own analysis. With Fed Decision Looming, Economy and Markets Wait Google Stock Concerned About AI? Other companys on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list. Also, the article may contain affiliate links. Co-producer of The Street's financial channels: Apple Maven, Amazon Maven and Wall Street Memes. AMC - Short Interest - AMC Entertainment Holdings Inc Stock - Short Short sellers are betting that a stock will decline in price. 'We should see the GME short squeeze continuing': S3 Partners Why is the AMC Entertainment stock seeing an increase in short interest? How does a short squeeze work against AMC Entertainment? . 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. 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 Analytics: 3rd Quarter Short Interest by Sector Recap. AMC Becomes The #1 Stock with Highest Borrow Fees 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%). Read More . Market wide Short Interest as a % of Float declined moderately in the 3rd quarter, decreasing -28 bps from 5.33% to 5.05%. Data from S3 partners reveal the AMC's shorted shares have dropped massively this month. While initial box-office receipts are promising, fundamental elements of the movie theater business have changed in the last year, including theater capacity, shared release dates with streaming services and the number of days that movies play in theaters. 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. In fact, the short interest in many of these speculative names has gone up in recent weeks, according to data firm S3 Partners. Will Deady on LinkedIn: AMC Entertainment Is Most Expensive Stock For GameStops valuation also doesnt make sense. 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%. 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. But according to Charles Lemonides, portfolio manager at ValueWorks, there is likely to be a pause in the aggressive short-selling of meme stocks. Reese also said that bets against AMC's business have been based on retail investor fatigue. Short sellers have covered about 796,000 shares, worth $41 million, over the last 30 days, with buy-to-covers growing over the last week with 1.40 million covered, worth $72 million., Why the stock could round trip: Valuation. Changes in short volume can be used to identify positive and negative investor sentiment. 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. The author may be long one or more stocks mentioned in this report. January 3, 2022. When it gets above 70, and it is currently at 86.81, they are overbought. Graphite is used to build batteries. "FRC shorts are now profitable in April, up +$195.0 million in month-to-date mark-to-market profits.". As of April 15th, investors have sold 137,470,000 shares of AMC short. Let's find out why that's a bad idea. S3 Partners LLC. The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. Dusaniwsky wrote, We have seen AMC short covering this week, but by no means are we seeing a wholesale short squeeze in this stock at the moment. Shares of the movie theater chain rallied more than 116% since Monday. No representation or implication is being made that using the methodology or system will generate profits or ensure freedom from losses. Not surprisingly, AMC was the most expensive stock to short in the first quarter, costing short sellers $225 million in stock borrow fees. AMC shares have risen nearly 60% this year-to-date. "They will never generate cashwith their current capitalstructure. Here's Why, (Read more from Wall Street Memes: MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy). . as well as other partner offers and accept our, begin to capitulate on the meme-stock frenzy, Registration on or use of this site constitutes acceptance of our. Recap using Fridays stock price of $248.36: Dusaniwskys chart on GameStop is available via his tweet. Learn More on AMC Entertainment's current short interest. 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. On the last day of 2019, AMC had a market value of $751.87 million. BBBY AMC Entertainment saw a decline in short interest in the month of April. With the Russell 3000 down only -0.43% for the quarter, short sellers outperformed the market significantly by being good stock pickers. The forced buying tends to fuel the rally even further. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Joe, you nailed it. Now the stocks short interest is around the same as it was when shares spiked to its all-time high. Short sellers raise bets against GameStop and AMC to highest level in a Learn More on AMC Entertainment's short interest ratio. Learn More on AMC Entertainment's short interest ratio. Mark-to-market losses are the primary impetus for a Short Squeeze to occur, and AMCs recent rally has pushed it into potential Short Squeeze territory.. Watch S3 Partners' Dusaniwsky on AMC - Bloomberg By the end of May, that number had grown to 109.83 million shares. Combined with retail buying pressure, an AMC short squeeze today is highly probable. He wrote, A security is considered crowded on the short side if some or all of the following occur:. Identify stocks that meet your criteria using seven unique stock screeners. AMCs short interest came down to 14% after the surge but began to rise again all throughout 2022. To put this into context, fellow meme stock AMC Entertainment has a short interest . Investors shorting the meme stock AMC Entertainment are estimated to have lost $1.23 billion over the last week. AMC surge slaps short sellers with $1.3B loss, AMC's stock soaring has nothing to do with a short-squeeze: LightShed's Greenfield, AMC to lighten its debt load by around $600 million. The rising 200-day average is currently near the $14 level, representing potential downside of 60% from current levels. AMC's short interest was only at 23% when buyers were able to squeeze a percent of short sellers from the play, sending share prices to their all-time high of $72. American Consumer News, LLC dba MarketBeat 2010-2023. S3 Partners. Other stocks with a 10 out of 10 score are Bed, Bath & Beyond Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. AMC Entertainment Is Most Expensive Stock For Short Sellers, But What Overall short sellers paid $1.86 billion in stock borrow fees in the 3rd quarter of 2021 (calculated daily borrow cost using S3s offer rate) versus $2.07 billion in stock borrow expenses in the 2nd quarter of 2021. In the top section of the chart below is the stocks Relative Strength Index or RSI. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. 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. 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. As of April 15th, there was short interest totaling 137,470,000 shares, a drop of 1.0% from the previous total of 138,840,000 shares. As AMC tests its key 50-day moving average support level, short bets against the company are increasing, according to data from S3 partners. This breakthrough stock has bright future this decade. Changes in short volume can be used to identify positive and negative investor sentiment. While a substantially large . AMC stock highest borrow fee S3 Partners - Franknez.com. 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). - AMC Enter Hldgs (NYSE:AMC) 86% of retail CFD accounts lose money, Beyond Meat hosts conference call for investors, Short Interest Sector Focus: Consumer Defensive Sector. 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. Dusaniwsky has developed a Short Squeeze score and ranks AMCs metric a 10 out of 10 for a short squeeze. The recent rally off the June 16 lows (S&P 500 +5.36%, Nasdaq +7.57%, Russell 3000 +5.42%) has made some crowded shorts more squeezable. 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. 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. At the end of April, 100.63 million shares were being shorted. 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. It wasnt until yesterday, May 27, that it had broken those records. AMC short sellers dealt massive $1.2 billion blow after stock rally - CNBC Dusaniwsky calculates that there continues to be moderate short covering in GameStop with short sellers covering 262,000 shares, worth $68 million, over the last 30 days but most of that short covering occurring over the last week with 145,000 bought-to-cover, worth $38 million. Dusaniwsky added, While a stock can be crowded it might not necessarily be a short squeeze candidate. 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. Plus500. Tesla Continues to Defy Expectations, Is it Buyable Again? Another moving average traders will likely have their eye on if AMC falls below its 50-day is the longer-term 200-day moving average. Short Interest Data. 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. While AMC short-sellers are down more than $3 billion in 2021 on a mark-to-market basis, that could soon reverse if AMC breaks below its 50-day moving average and trends towards its 200-day moving average. 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. At the current valuation AMCs shares are 12.7 times more expensive than 2017s valuation level. A short interest ratio of 10 or greater indicates strong pessimism about a stock. Short interest stands . 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. The rally cooled off late Friday after AMC's stock skyrocketed as much as 38% during early morning trading. As AMC tests its key 50-day moving average support level, short bets against the company are increasing, according to data from S3 partners. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use. S3 Partners (@S3Partners) / Twitter By downloading any information from s3partners.com your information may be shared with our educational partners or affiliates. Our platform connects, collects, and cleans position data across the total trade life cycle for any portfolio. 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. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. Revenue increased fivefold, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 80%, compared to last year. Dusaniwsky has developed a Short Squeeze score and ranks AMC s and GameStops metric a 10 out of 10 for a short squeeze. 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. Short positions in First Republic Bank now account for 32.5% of its stock available to trade. S3 Partners Home Your use of any information or observations contained herein is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of such information or observations. The stock tested a key support level on Wednesday, as it traded around its 50-day moving average at $37.28. The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. See, AMC stocks short interest data is a recipe for a short squeeze, something similar to what occurred in January and June of 2021. 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. - Shorts Think So. 2023 S3 Partners, LLC. 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. Before you get any more clout - let's just be transparent here and acknowledge S3 is owned by Citadel. AMC shares currently have a short interest ratio of 4.0. 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. 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.

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