Short selling in SiteOne Landscape Supply (SITE) is up again today, continuing a trend since the end of February. SITE shares shorted are up 830k over the last month, an increase of 13% and the largest increase of shares shorted in the Trading Companies & Distributors sector. Shorts have shorted 2.04 million shares over the last two and a half months, an increase of 40%, even though SITEâ€™s stock price has rallied 24% over the same time period.
Short interest in the sector has decreased by $382 million, -6.2%, over the last month with shares shorted declining by 2.34 million shares. SITE is only one of six stocks in the sector with an increase of short selling with 42 stocks showing short covering. Short sellers have been active soon after the share price bottomed out at the beginning of February and have been building their positions even though SITE is up 21% for the year. SITE short sellers are down $70 million of mark-to-market losses for the year, down 20.63%. Most short sellers in the sector have incurred mark-to-market losses with shorts in the sector down $839 million, down 13.24%, for the year and only five stocks up over $1 million in mark-to-market profits.
SITE posted EPS and revenue misses in their recent filings, but its stock price rallied 9% since their announcement on projected 10-18% year-over-year EBITDA growth. UBS recently lowered their price target to $58 from $61 and kept its neutral rating on the stock. SITE short sellers continue to short into the stockâ€™s price strength, looking for a reversal in its two-and-a-half-month trend. Shorts are ramping up their activity lately, possibly signaling a market top in the stock.
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