Financial analytics firm Ortex is now reporting a massive drop in AMC short interest, an indication that short sellers have closed their positions. Is this a mistake on their end?
The drop represents a -47.65% decline in short interest with figures such as utilization also dropping another -42.48% according to the firm’s data.
On social media, AMC investors argue that the data is not accurate.
Here’s what Ortex says about its short interest data:
“In the US, stock exchanges only publish short interest data twice a month and this data is also delayed by eight trading days, leaving investors in the dark regarding daily short selling activity.
In addition, in Europe, financial institutions are only required to flag to the local regulator whenever they go over or back under certain thresholds.
This provides valuable and timely additional data but only on positions above the reporting threshold.
ORTEX add these flags intra-day as soon as the regulator publishes them, aggregates an institution’s overall current short position and lists all the latest flags so users get an accurate idea of latest sentiment.
ORTEX Short interest data is sourced from the world’s largest combined pool (over 700k pools of liquidity) of Agent Lenders, Prime Brokers, and Broker-Dealers who submit their inventory.
As the US exchange data is delayed ORTEX fills this void with daily up‑to‑date information from the global securities finance market and enables users to gauge changes in investor sentiment.
This data is updated by 7.30am EST each day with current stock borrows, meaning you won’t find more timely or accurate data.
ORTEX looks at the number of shares being borrowed, because you need to borrow a stock in order to short it.
In addition to seeing how many shares are out on loan (both as the actual numbers of shares, as a percentage of free-float and as a ratio of average volume (DTC)), this dataset also shows the average interest rate for current loans (Cost to Borrow) as well as the utilization.
Utilization shows how many percent of the lendable shares are currently lent out.”
Also Read: Everything You Need to Know About an AMC Short Squeeze
Why Did Short Interest Drop in AMC?
According to Investopedia, short interest is often an indicator of current market sentiment.
An increase in short interest often signals that investors have become more bearish, while a decrease in short interest signals that they have become more bullish.
So, does this mean we might see AMC Entertainment stock finally skyrocket like it did in 2021?
“Changes in short interest, and even extremes, may not lead to significant price changes in a timely fashion.
A stock can stay at an extreme reading for long periods or a major price decline.
A short squeeze occurs when a high number of short sellers attempt to cut their losses and exit their short positions by purchasing their borrowed shares due to panic about potential losses.
Also, a short squeeze often occurs if a stock price rises,” per Investopedia.
Hedge fund CEO Bruce Richards now says he’s ‘super bullish’ on AMC following its APE conversion.
However, AMC stock has fallen more than -57% in the past week alone and is currently down more than -66% this year-to-date.
AMC shareholders allege crime is suppressing shares of the movie theatre company from rising.
But what do you think? Will we see a reversal towards the upside soon? Is a letter to shareholders urgent now more than ever? Leave your thoughts below.
Also Read: AMC Stock: The SEC Has Now Violated Threshold Rule
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As long as ape is listed and as long as the shares on loan as high as now and as long as amc is on threshold list (day 48) and not all shares deliverd inclusive settlement shares – how the hell can the provide numbers are correct. Als you wrote it delay of 8 days means earliest next week we can hope to see some “acurate” numbers.
AMC is/was a distraction from the real play – retail doesn’t matter unless we all stand on the same spot. Wanda sold their huge position in after hours and the stock price didn’t go down… Big money flipped from short to “long” setting up thier cash cow. Divide and conquer – cnbc & other shills pumped amc, big money used dumb money to ride the storm on the real play.
It’s all rigged. The lunatics run the asylum. They have destroyed the value of humanity by their theft and manipulation.
When humanity is run by psychopath criminals and are in control of the money system and steer humanity in to hell what will you do? Oh sure, you say that now. You will regret it, sooner or later. No one will remember what it was like to live in a relatively sane world in 10 years.
Oh well, no one cares until it punches them in the face and then it’s too late.
Leave your thoughts below.