Elanco Animal Health Inc (ELAN) short interest is $835 million; 28.45 million shares shorted; 39.42% short interest % of float; 9.90% stock borrow fee.
ELAN had the third largest increase in shares shorted this week, and increase of 7.77 million shares or +37.55%. In addition to an increase in short selling, overall total trading volume and option trading volume in ELAN has been well above average over the last wee kas well.
On Friday, February 8th, Eli Lilly (LLY) announced that it would divest its remaining holdings in the company after spinning off the subsidiary in 2018. LLY sold 20% of its holdings in the spinout and is now preparing to sell its remaining 80%.
Short sellers are seeing LLY‚Äôs sale of its remaining 80% stake as a negative influence on future stock performance as the $8 billion in stock sales could push share prices lower.
We are seeing continued active short selling ELAN with stock borrow rates getting more expensive as available lendable inventory gets taken down. Stock borrow rates are now spiking as less than 20% of lendable shares are left on the street. Today‚Äôs stock loan trading is reflecting the sudden increase in short selling with stock borrow rates ranging from 25% to 45% fee today.
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¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† ¬†Managing Director Predictive Analytics, S3 Partners, LLC
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