Lyft, Inc (LYFT) shares are down to $58/share, down -4.90%, today and -19.44% in late-morning trading and we are seeing active short selling in the name as its share price continues to trade below its IPO price. We are seeing over 1 million shares of additional short selling this morning which is adding downward pressure to the long selling that has hampered this stock since its issuance.
LYFT short interest is $944 million, 15.47 million shares shorted; 64.74% of its float; 2.15% stock borrow fee and climbing. We are seeing rates nearing 3.00% fee again and if short selling continues at this rate stock borrow supply will begin to signs of scarcity and rates may head up to the double digits within a few days.
LYFT short sellers have fared better than post-IPO long shareholders. They are up $43 million in mark-to-market profits today, bringing their post-IPO profits up to $202.4 million.
While todayâ€™s trading activity is showing the effects of increased short selling, if stock borrow supply dries up and short selling activity is curtailed due to lack of stock loan to support short locates and sales LYFTâ€™s stock price movements will be predominately dependent on the whims of its long shareholders. Price drops will be due to long shareholder sales with short sellers only being able to fidget on the sidelines while price rallyâ€™s will not have the impediment of shorts sellers hitting the brakes on upward price moves.
LYFT has the 4th largest Short Interest as a % Float of domestic stocks with over $50 million of short interest:
Want deeper insight into the above analysis?
Contact:Â [email protected]
Managing Director Predictive Analytics, S3 Partners, LLC
For more information on S3â€™s reporting, data and analytics solutions, email us at [email protected]. Start your free trial of the BLACK App â€“ the only source of real-time short interest on the Bloomberg Terminal or Thomson Reuters Eikon.
For short side data and access to our research reports go to https://shortsight.com/ .
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (â€śS3 Partnersâ€ť) to be reliable and accurate.Â 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.Â 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 decisions.