Short sellers of Equifax continue to add to their positions even as the stock continues to rebound from the huge drop experienced on September 7th. S3 Partners real-time short interest analytics calculates that dollars at risk on the short side to be $281 million with 2.6 million shares sold short. Since the day of the breach was announced, the number of shares short has risen 570,000 a 28% increase. Although the number of shares has increased, the dollars at risk has remained flat due to the sizeable drop in price of the stock.
Despite the elevated levels of short interest, S3 estimates that only 2.2% of the float is being utilized. If short sellers want to increase exposure there is plenty of stock available to borrow. Equifax stock continues to trade at general collateral levels, the cheapest fee or the easiest to borrow stock. During this volatile period for investors, short sellers would have seen total profitability on their trades of $80 million (a 33% return).
Equifax is currently the 3rd largest short in the Research and Consulting Industry.
The drop in price of Equifax stock was not due to short sellers piling in; it was primarily driven by long holders decreasing their holdings.
Want deeper insight into the above analysis? Contact:
Director, S3 Partners
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC ('S3 Partners') to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks and merits, as well as the legal, tax, accounting and investment consequences, of such decision.