APE shares fell -8.91% on Wednesday despite having heavy buying volume.
AMC’s Preferred Equity (APE) made it on Yahoo’s list as the #1 Top Most Shorted Stock on its list.
According to Fintel, APE had 5.4 million shares going to dark pools today with approximately more than 50.6 million shares having been shorted, via NYSE.
APE volume traded above average closing Wednesday’s rally around 23 million shares.
So, what is happening with APE?
Let’s discuss it.
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Massive Selloff in APE Fuels Declining Share Prices
Nasdaq’s latest report on APE is showing the security only has 0.18% in institutional ownership.
The stock has big demand in the market from retail investors, but overleveraged shorting has suppressed the stock’s price from rising.
But institutional ownership has also largely declined according to the latest Nasdaq report.
And with AMC Entertainment selling APE shares through Citigroup, holders of the equity keep getting hammered.
According to Nasdaq, there are only 8 new institutional positions in APE with 298 total sold out positions.
This is equivalent to 327,046 institutional shares added versus 145.5 million shares sold.
Out of 13 institutions holding APE, 4 remained unchanged.
Retail investors have very little help from institutions in driving the share price up.
Nearly all institutions who received APE through AMC have sold it.
AMC Entertainment capitalized from APE in October when it was able to claim $106 million and pay down some debt.
I think it’s fair to assume insiders won’t be buying APE anytime soon as it’s primarily a tool to capitalize from its shareholders, rather than a long-term investment.
Is An APE Short Squeeze Possible?
Some AMC shareholders are convinced that APE’s high short interest mixed with large buying pressure will trigger an APE short squeeze or trigger major price action like we saw with AMC in June of 2021.
And hypothetically speaking, they’re not wrong.
But APE would need to get backed up by institutions with strong enough buying power to scare short sellers out of their positions.
Because despite retail’s efforts, capital is just being eaten up by dark pools, selloffs, and heavy shorting.
And unfortunately, Gary Gensler is nowhere in sight to level the playing field.
Are you holding APE?
I’m curious to hear your thoughts.
What is your sentiment around APE?
Leave a comment down below.
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