The short interest is 37,300,000 shares. The short interest ratio is 2.68 days. Short interest is 29.67%
10/25/2024 02:28pm
Based on the updated information, here's the analysis:
1. **Short Interest Update**: The latest data shows that the short interest in Wolfspeed (WOLF) is 37,300,000 shares, which represents a significant stake in the company's stock. This figure indicates that a substantial number of investors are betting against the stock, which could potentially lead to a short squeeze if market sentiment shifts.
2. **Short Interest Ratio Analysis**: The short interest ratio (SIR) is calculated as the number of shares sold short divided by the average daily trading volume. In the case of WOLF, the SIR is 2.68 days. This ratio is relatively low, indicating that the stock is heavily shorted and could be vulnerable to a short squeeze if there is a significant increase in buying pressure.
3. **Short Interest Percentage**: The short interest percentage is 29.67%, which means that nearly 30% of the float is sold short. This high percentage further supports the notion that WOLF is heavily shorted and could be prone to a short squeeze if there is a positive catalyst for the stock.
4. **Market Sentiment and Potential Trigger**: For a short squeeze to occur, there needs to be a sudden and significant positive development for the stock, such as an earnings beat, a major contract win, or a favorable industry development. Without such a catalyst, the heavy short interest may not be enough to trigger a short squeeze.
5. **Conclusion**: While the updated data shows that Wolfspeed has a high level of short interest and a low short interest ratio, it does not guarantee that a short squeeze will occur. A short squeeze requires a specific set of market conditions and catalysts that can rapidly change sentiment among investors. Therefore, while WOLF is potentially vulnerable to a short squeeze, it is not guaranteed to happen without further positive developments.