Short Interest Monitor: FND, QBTS, LQDA
The latest edition of the Short Interest Monitor is dominated by pharmaceutical companies but also features several tech stocks tied to AI and quantum computing, as well as one home improvement retailer—Floor & Decor Holdings (FND).
Traders targeted FND in June amid its ongoing expansion. The company eventually plans to operate 500 warehouse stores nationwide, up from more than 275 locations currently. In its first-quarter earnings release, however, FND missed consensus earnings per share (EPS) and revenue estimates, reporting flat year-over-year sales and just $0.37 in diluted EPS despite its expansion push. Declining same-store sales, housing market headwinds, and debt-related concerns might have led short sellers to target the company late last month.
The quantum-computing company D-Wave Quantum (QBTS) also drew increased short-seller attention in the final two weeks of June. Profitability concerns, reliance on a few large customers, and a lofty valuation may have attracted the bearish bets. In the first quarter, QBTS reported a net loss of $18.4 million on just $2.86 million in revenue, although bookings jumped nearly 2,000% to $33.4 million. QBTS shares surged in late May and early June after the company secured a letter of intent granting it up to $100 million in U.S. CHIPS Act funding but have performed poorly over the past three weeks.
Although its shares have surged more than 120% year to date, Liquidia Corporation (LQDA) was also targeted by short sellers in the second half of June. The biopharmaceutical company, which develops therapies for rare cardiopulmonary diseases, saw its revenue surge more than 4,000% to $132 million in the first quarter as sales of its pulmonary hypertension drug Yutrepia skyrocketed. However, after that rally, valuation concerns may have attracted short sellers. LQDA currently trades at over 400 times its trailing 12-month earnings.
Check out the table below to see the complete Short Interest Monitor, which includes 10 equities with elevated and rising short interest. Each stock has a market cap of at least $2 billion and short interest that represents at least 10% of its outstanding shares.
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