Weâ€™re seeing slivers of LYFT stock borrowing this morning going in the neighborhood of 90% fee.
Brokers will be pulling down every scrap of LYFT stock borrow shares today to start covering the locates they issued over the last two trading days. We expect rates to stay exorbitantly high until the bulk of lendable inventory hits the street â€“ that should take a day or so for settlements to finalize and lenders to put out stock.
With stock borrow rates starting off so high, it is an indication that inventory from the major beneficial owners and lenders is not in play yet. But, rates at these levels will influence future stock loan trading â€“ lenders will not be offering large blocks of stock en masse which will depress rates quickly and reduce potential revenues. Smart lenders will release shares slowly and discreetly in an attempt to stabilize rates at premium levels.
LYFT short selling and stock borrows will be extremely fluid over the next week, we expect stock borrow rates and shares shorted levels to fluctuate dramatically in the near term.
Bottom line, LYFT short selling is still being hampered by lack of stock borrow supply, it is trading down $3/share in pre-market trading â€“ it once again long selling not short selling which is the driving force behind this morningâ€™s price movements.
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.