Mixed August Short Interest
August Short Interest Surges for Metropolitan Bank While Declining for PIMCO ETF
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Key Points
1
Metropolitan Bank & Trust’s short-interest ratio reached 3.6 days, while its shares opened at $1.03; the stock’s 52-week range was $0.85 to $1.53.
2
New Mountain Finance’s 8.25% notes paid a quarterly dividend of $0.5156, equivalent to an annualized $2.06 and an 8.2% yield, alongside the reported increase in short interest.
3
MFS Government Markets Fund had 74,959 shares sold short, representing about 0.2% of shares outstanding, and its 1.1-day days-to-cover ratio was based on average daily volume of 70,888 shares.
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Institutional investors and hedge funds owned 54.77% of MFS Government Markets Fund, with Cetera Investment Advisers increasing its position by 44.8% and several other firms reporting newly acquired stakes.
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PIMCO Short Term Municipal Bond ETF’s short interest fell to approximately 0.1% of shares outstanding; its shares traded near $49.88, close to the fund’s one-year low of $49.86 and below its 50-day and 200-day moving averages of $50.24 and $50.40, respectively.
Short interest across five securities swung wildly in August, with three posting double-digit gains and two posting significant declines. TickerReport and WatchlistNews reported that Metropolitan Bank & Trust's short interest surged 225.8%, while MFS Government Markets Fund jumped 158.3% and New Mountain Finance's 8.25% notes due 2028 climbed 130%. By contrast, the PIMCO Short Term Municipal Bond ETF fell 67.6% and Paul Mueller Co. dropped 50%, though the latter had just one share short by month-end.
Despite the volatile moves, the overall picture suggests limited broad bearish pressure. Most securities showed narrow trading ranges and low short-interest ratios, with several positions small enough to cover in under two days of typical trading volume.
Metropolitan Bank Leads Surge in Short Bets
Metropolitan Bank & Trust saw the month's largest short-interest increase, rising 225.8% in August according to TickerReport. The stock opened at $1.03 and traded within a 52-week range of $0.85 to $1.53. The spike pushed the short-interest ratio to 3.6 days, meaning traders betting against the bank would need 3.6 trading days of average volume to cover their positions.
New Mountain Notes See Heavy Short Bets Despite Income
New Mountain Finance's 8.25% notes due 2028 posted a 130% surge in short interest, climbing to 2,436 shares sold short according to WatchlistNews. The notes paid a quarterly dividend of $0.5156, equivalent to an annualized yield of 8.2%. Despite the rising short interest, the securities had just 0.3 days of trading volume needed to cover short positions — meaning the bearish bet could be unwound in hours.
MFS Government Fund Rises on Institutional Buying
MFS Government Markets Fund's short interest jumped 158.3%, with 74,959 shares sold short representing about 0.2% of shares outstanding according to WatchlistNews. The fund's 1.1-day days-to-cover ratio reflected average daily volume of 70,888 shares. Institutional investors and hedge funds owned 54.77% of the fund, with Cetera Investment Advisers increasing its stake by 44.8% during the period.
PIMCO Municipal Fund Shares Hit Year Lows
The PIMCO Short Term Municipal Bond ETF bucked the upward trend, with short interest falling 67.6% in August. Short positions dropped to approximately 0.1% of shares outstanding according to WatchlistNews. The fund's shares traded near $49.88, just above its one-year low of $49.86 and below both its 50-day moving average of $50.24 and 200-day average of $50.40, signaling sustained weakness.
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