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Avis Budget Short Interest Rises to 36.2%

Welcome to this week's installment of "The Short Interest Report" - The Fly's weekly recap of short interest trends among some of the most widely followed high-short-float stocks. Using the data from our partner, which utilizes the latest information from stock lenders to estimate short interest changes for thousands of publicly traded companies, this report will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios while also considering the short interest data on some of the more volatile and heavier-traded names of the week. Based on the availability of data from Ortex, the report tracks the trading period that covers prior Friday through Thursday of this week, excluding holidays. As a basis of comparison for stocks discussed below, the S&P 500 index was up 0.4%, the Nasdaq Composite was down 0.1%, the Russell 2000 index was up 0.2%, the Russell 2000 Growth ETFwas down 0.1% and the Russell 2000 Value ETFwas up 0.5% in the five-day trading session range through July 30.SHORT INTEREST GAINERSOrtex-reported short interest in Avis Budget Grouphad fallen to a 15-month low of 29% of free float late last week before reversing sharply higher to 36.2% this week as the stock took another leg lower following its July 28 Q2 earnings release. The abrupt increase suggests bearish investors reestablished positions after the post-earnings selloff, reversing what had been a steady reduction in short exposure. Days to cover also surged from 3.8 to 6.7, reflecting a significantly larger short position relative to recent trading volumes. Shares declined 4% during the five-day reporting period and fell an additional 9.6% on Friday, leaving the stock at its lowest level since March.Ortex-reported short interest in Sable Offshorehas accelerated sharply after bottoming at 24.2% of free float on July 10, rising for three consecutive weeks and jumping from 32.4% to 43.7% in the latest reporting period, the highest level in four months. Bearish conviction has strengthened as investors continue to question the company's operational and regulatory outlook despite recent attempts at a rebound. Days to cover climbed from 4.2 to 5.4, indicating that the expanding short position would require more trading days to unwind. The stock declined 4% during the five-day period covered by the data and has now fallen by 41 year-to-date, although shares staged an 18% rally on Friday.Ortex-reported short interest in Intuitive Machineshad troughed at a four-month low in mid-May but has since trended higher while the stock apexed at the end of May and then sold off sharply, tracking the cratering in the "north star" of space economy – SpaceX. This week, short interest as a percentage of free float in Intuitive Machines jumped from 26.7% to 32.1% - a four-month high. The stock was down 10% in the five-day period covered and has now lost 24% year-to-date. Shares were up as much as 188% year-to-date through its peak on May 28, but have now lost 74% of that value.SHORT INTEREST DECLINERSOrtex-reported short interest in UiPathhas retreated for a second consecutive week after peaking at an all-time high above 36% of free float on July 14, with bearish positioning falling from 33.8% to 27.0% in the latest reporting period, the lowest level since May 11. The decline suggests short sellers have been locking in profits as the stock has extended its recent rebound. Days to cover also fell from 2.6 to 2.0, the lowest level since the first week of January, as trading volumes accelerated significantly throughout July. Shares gained 21.3% during the five-day period covered, although the stock remains 22% lower year to date. While UiPath continues to rank among the more heavily shorted software names, the sharp reduction in short interest and improving liquidity point to a meaningful easing in bearish conviction over the past two weeks and tracks with broader repositioning from the overbought semiconductor space toward the oversold software sector.Ortex-reported short interest in Figmahas retreated sharply after peaking at an all-time high above 36% of free float on July 6 and consolidating in the 33%–36% range over the past month. In the latest reporting period, bearish positioning plunged from 33.9% to 25.9%, the lowest level since the last week of May, suggesting short sellers have been aggressively covering into the stock's recent strength. Days to cover also declined from 4.0 to 3.0 as trading volumes continued to build steadily. Shares gained 19% during the five-day period covered, though the stock remains 35% lower year to date. The combination of heavy short covering, lower days to cover, and rising trading activity points to a meaningful easing in bearish sentiment after what had been one of the market's most crowded short positions.

Federal Reserve Holds Rates Steady, Major Indices Drop Significantly

The major averages had a significantly lower finish after the Federal Reserve maintained interest rates. The central bank left the federal funds rate unchanged at 3.50%-3.75%, though three Fed members voted to raise rates by a quarter point. Commenting on the news, Fed Chair Kevin Warsh said that FOMC discussions were "collegial and constructive," adding that inflation issues "cannot be cured in nine weeks." All three major indices ended the trading day at their lowest points, with each down at least 1.5%.Meanwhile, oil prices rose after President Donald Trump told a Fox News reporter that the U.S. will be hitting Iran "hard" in response to recent surprise attacks in the region. The news comes after U.S. Central Command said in a post on X, formerly Twitter, that Islamic Revolutionary Guard Corps forces launched "multiple ballistic missiles in an attempted surprise attack on U.S. forces based in the Middle East." CENTCOM noted that the missiles were successfully intercepted.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Fordprovided areport for Q2Procter & Gamblereportedand provided its core EPS outlook for FY27Seagatereportedand provided guidance for Q1 and FY27CBIZagreed to befor $5BThe Federal Reserve left theat 3.50%-3.75%2. WALL STREET CALLS:Caterpillarat Baird amid growing trend towards regulatory action at targeting data centersCitiFordto Buy on improving momentumCheesecake Factoryto Hold at Jefferies and upgraded to Equal Weight at Morgan StanleyBloom Energyto Buy at Clear Street after pullbackGoldman SachsGeminito Sell, sees a challenging path to profitability3. AROUND THE WEB:Shelland Phillips 66are working on a potential sale of their stakes in the company which owns the Explorer refined products pipeline, Reuters reportsDisneyis dropping GitHub Copilot for OpenAI, Insider reportsUnileverhas agreed to protect employment terms for workers in its European food business for two years following the completion of its merger with McCormickin 2027, Reuters saysNvidiahas signed leases worth up to $50B for a 1GW Texas data center being developed by Hut 8, underscoring its growing role in financing AI infrastructure and securing long-term computing capacity, FT reportsMetaCEO Mark Zuckerberg, in an opinion piece in The Wall Street Journal, argues that the coming era of superintelligence should focus on empowering individuals rather than concentrating AI power in a small number of governments or companies4. MOVERS:Verra Mobilityincreased afterwith Avis BudgetNeoGenomicswas higher afterand raising its revenue guidanceAvantorand ExlServicegained afterParsonsfell afterand lowering its guidance for FY26Bandwidthand Lemonadewere lower after5. EARNINGS/GUIDANCE:Humanareportedand reiterated its FY26 outlookSoFi Technologies, with EPS and revenue beating consensusJohnson Controls, provided guidance for Q4, and raising its outlook for FY26Garrett Motion, with CEO Olivier Rabiller calling it "a strong second quarter"Lennoxand cut its guidance for FY26INDEXES:The Dow fell 1,153.18, or 2.19%, to 51,594.14, the Nasdaq lost 433.97, or 1.74%, to 24,442.94, and the S&P 500 declined 112.63, or 1.52%, to 7,316.15.