On Twitter, Adam Aron responded directly to a user regarding AMCs short thesis. "All that reallymatters here long term, thiscompany is never going to makecash again," Rich Greenfield, co-founder of LightShed Partners, said Friday morning on CNBC's "Squawk Box." 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. An increase in short sale volume suggests bearish (negative) sentiment among investors. How often is AMC Entertainment's short interest reported? Id love to know your thoughts leave a comment down below. 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. Short Interest and Securities Finance Data - Access the only independent Short Interest and Securities Finance data set available. For stock market, business news and updates,join the newsletterto receive weekly market news and notifications straight to your inbox. AMC short sellers dealt massive $1.2 billion blow after stock rally - CNBC Leave your thoughts below! There were 6,195 shorted equities with negative P\L, producing -$49.4 billion in losses, -9.8%. Our platform connects, collects, and cleans position data across the total trade life cycle for any portfolio. This short interest tracker provides a variety of short interest related data, sourced from a variety of partners. 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. Some of the factors in it are short sale liquidity, trading liquidity, financing liquidity and mark-to-market profit and losses. AMC Entertainment Is Most Expensive Stock For Short Sellers, But What Other Stocks Top The List? Lets start a discussion. A new note from S3 Partners highlights why short-selling AMC may not be worth the cost. American Consumer News, LLC dba MarketBeat 2010-2023. For AMC, the picture for the short-seller is far bleaker than the one for GameStop. contact@marketbeat.com 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? The "King Of Quants" sees 10X potential Cybersecurity Firm Raises $5M in Five Days. (844) 978-6257. The shares closed at $26.12 per share Friday, up from $13.68 on Monday. At the current valuation AMCs shares are 12.7 times more expensive than 2017s valuation level. A Division of NBCUniversal. He wrote, A security is considered crowded on the short side if some or all of the following occur:. To make matters worse, AMC short sellers have also gotten burned by the stock's 33.2% year-to-date gain. Short sellers are betting that a stock will decline in price. GameStop, AMC Short Sellers Lose $12 Billion As Retail - Wccftech Learn More on AMC Entertainment's short interest ratio. Before Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash flows two of the three previous years. It wasnt until yesterday, May 27, that it had broken those records. 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 . Watch S3 Partners' Dusaniwsky on AMC - Bloomberg 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. Unify your firm's cash with your prime and custody wallets by seamlessly integrating our solution with your own OMS. 2023 S3 Partners, LLC. 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. How high the stock will jump to is unknown. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Reese also said that bets against AMC's business have been based on retail investor fatigue. With the huge spike in AMCs shares they are definitely in overbought territory. Got a confidential news tip? Investors that short sell a stock are betting . 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. He added, While a stock can be crowded it might not necessarily be a short squeeze candidate. But they will usually continue to ride the wave until the wave dissipates, or they are forced out by market conditions such as stock recalls or unpalatable stock borrow fees. See, AMC stocks short interest data is a recipe for a short squeeze, something similar to what occurred in January and June of 2021. 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. . Over the past week, short bets increased 6% to 5 . AMC stock highest borrow fee S3 Partners - Franknez.com. How does a short squeeze work against AMC Entertainment? These partnerships do not influence editorial content. June 4, 2021: $21.6 billion with $5.47 billion in revenue = 3.9x market cap to revenue. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. 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. SPCE "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. This is@CEOAdamstrategy and the only strategy that has ever worked in the history of the market! AMCs short borrow fee rate has skyrocketed in the past months but is now reaching record highs. The more than 1,100% jump in AMC's stock since January has defied Wall Street analyst predictions. What we do know is that CEO Adam Aron plans to tackle the short thesis fundamentally. 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.". AMC Entertainment saw a drop in short interest in the month of April. 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. But a single trading day above its 50-day moving average is no sure-signal that AMC stock will continue to trend higher, as declining momentum indicators like the Relative Strength Index suggest fewer buyers are stepping in to support the stock than in previous weeks and months. Related Link: Are Hedge Fund Short Sellers Hunting And Targeting Specific Bank Stocks? Traders typically short a company, in anticipation its share price will decline, by borrowing stock. On Friday, that value stood at around $11.9 billion, according to data from FactSet. Image: S3 Partners, LLC. Changes in short volume can be used to identify positive and negative investor sentiment. What does it mean to sell short AMC Entertainment stock? This Could Be a Bad Time to Bet Against AMC. Here's Why AMC - Short Interest - AMC Entertainment Holdings Inc Stock - Short Sign up for free newsletters and get more CNBC delivered to your inbox. Co-producer of The Street's financial channels: Apple Maven, Amazon Maven and Wall Street Memes. S3 Analytics: 3rd Quarter Short Interest by Sector Recap. GameStop Short Sellers Flee As Short Interest Drops By $880 - Wccftech They are now transforming AMC into a growth company. FCF was negative $300 million. S3 Partners Home AMC Entertainment Is Most Expensive Stock For Short Sellers, But What Other Stocks Top The List? Graphite is used to build batteries. Dusaniwsky added, While a stock can be crowded it might not necessarily be a short squeeze candidate. The industry leader for online information for tax, accounting and finance professionals. 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). . The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. As far as the company's balance sheet is concerned, free cash flow (FCF) suffered in the first quarter. Probably the best metric is market cap to revenue. A short position, no matter how crowded, that continues to be profitable cannot be squeezed. As AMC tests its key 50-day moving average support level, short bets against the company are increasing, according to data from S3 partners. Highest Borrow Fees: Incredibly, short sellers are currently paying a 168.3% fee to borrow AMC shares, more than double the borrow fee of any other stock, according to S3. #AMC#AMCSqueeze.. How does AMC Entertainment's short interest compare to its competitors? The retail investors' agenda has been to keep AMC alive and to "stick it" to the hedge funds, one analyst told CNBC. In-depth profiles and analysis for 20,000 public companies. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. S3 Analytics: 2022 Amazon.com Rally? View which stocks are hot on social media with MarketBeat's trending stocks report. This has allowed AMC's management to go beyond simply recovering its business. Changes in short volume can be used to identify positive and negative investor sentiment. The Consumer Discretionary (primarily auto) and HealthCare (Biotech) sectors have the most constituents in the top 25 most squeezable stocks. You can now read exclusive FrankNez articles for only $1/mo. Short interest is typically published by a stock exchange once per month. 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%). No representation or implication is being made that using the methodology or system will generate profits or ensure freedom from losses. With the Russell 3000 down only -0.43% for the quarter, short sellers outperformed the market significantly by being good stock pickers. AMC Entertainment has enough short sellers to create big buying pressure in a buy back when closing short positions. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. The five largest short-side winners in the 3rd quarter were: BABA (+$3.93bn), AMC (+(1.42bn), ZM (+$1.32bn), NIO (+$1.06bn), W (+$964mm). Thank you for all your help. AMC shares currently have a short interest ratio of 4.0. FAANG stocks were up an average of +27.3% in 2021 but Amazon.com Inc (AMZN) underperformed the group significantly with only . Dusaniwsky has developed a Short Squeeze score and ranks AMC s and GameStops metric a 10 out of 10 for a short squeeze. However, even when these criteria are met it does not necessarily mean the stock is a short squeeze candidate. 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. GameStop may be able to shake up its business enough to recover at least some of downturn but it wont happen overnight. 326 E 8th St #105, Sioux Falls, SD 57103 Use this data to understand bearish bets, conviction levels and what is driving price action, and identify which trades are crowded and why for over 65,000 global securities. S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the companys short interest. 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. Here is how the short interest of companies in the sector of "consumer discretionary" compare to AMC Entertainment: Cinemark Holdings, Inc. (25.76%), Grupo Televisa, S.A.B. MicroStrategy Stock: A Trial by Fire for Its Bitcoin Strategy. 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. A buy signal is flashed when the short-term moving average crosses above the longer-term moving average, as happened for AMC in February. 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