Biotech Bets Turn Bullish
Biotech Stocks See Widespread Short Interest Declines, Signaling Renewed Bullish Sentiment
Key Points
Bluejay Diagnostics saw insider buying by major shareholder Financial Lp Hrt: 64,047 shares purchased on July 9 at an average price of $1.51, lifting their stake to 126,993 shares (about a 101.75% increase) and representing roughly 6.10% of the company.
Armistice Capital LLC added a new stake in Bluejay Diagnostics, acquiring 65,000 shares in the fourth quarter, giving it about 9.15% ownership; hedge funds collectively owned about 18.47% of the stock at the time.
Calidi Biotherapeutics carries a market cap of about $1.98 million and a days-to-cover of 0.3 days, with liquidity metrics showing quick and current ratios around 1.92 and a debt-to-equity ratio of 0.15.
Calidi’s stock last traded around $1.64, with a 50-day moving average of $2.19 and a 200-day moving average of $5.46; the company reported a quarterly EPS of -$6.88 at its May results.
Cannabix Technologies’ short interest collapsed to 60 shares (0.0% of float) as of July 31, leaving essentially no outstanding short position; the stock’s market cap is about $47.5 million and the stock trades with a P/E around -19.33.
Short interest across a range of small-cap biotech stocks collapsed in July, with some companies seeing bearish bets nearly wiped out entirely. Cannabix Technologies led the retreat, with short interest plunging 98.8% to just 60 shares as of July 31 — essentially zero, according to Watchlist News.
The sharp drops span several niche biotech and diagnostics firms. Bluejay Diagnostics fell 97%, Trinity Biotech dropped roughly 95%, and Calidi Biotherapeutics shed 93.2% of its short interest. The moves suggest traders are pulling back on bearish bets — or that bulls are stepping in.
Cannabix and Bluejay See Short Interest Nearly Erased
Cannabix Technologies now carries a short interest of just 60 shares — 0.0% of its float. The stock has a market cap of about $47.5 million and trades at a price-to-earnings ratio of around -19.33. With virtually no shorts left, there is almost no bearish pressure on the stock at all.
Bluejay Diagnostics also saw its short interest fall sharply, down 97% to 16,980 shares as of July 31. That decline came alongside notable buying activity. Insider Financial Lp Hrt purchased 64,047 shares on July 9 at an average price of $1.51 per share. That lifted their total stake to 126,993 shares — a 101.75% increase — giving them about 6.10% ownership of the company, according to Watchlist News.
New Institutional Money Flows Into Bluejay Diagnostics
Armistice Capital LLC made a fresh bet on Bluejay Diagnostics, picking up 65,000 shares in the fourth quarter. That gave the hedge fund roughly 9.15% ownership of the company. In total, hedge funds collectively owned about 18.47% of Bluejay's stock at the time of the report.
Institutional interest alongside insider buying often signals growing confidence in a stock. For a small-cap diagnostics company, that level of hedge fund ownership is meaningful. It points to at least some professional investors making a deliberate bullish move.
Calidi Biotherapeutics Shrinks Shorts Despite Weak Financials
Calidi Biotherapeutics cut its short interest by 93.2%, down to 231,318 shares. The stock last traded around $1.64, well below its 50-day moving average of $2.19 and its 200-day moving average of $5.46. The company reported a quarterly loss of $6.88 per share in its May results — a deep loss for a firm with a market cap of just $1.98 million.
Despite the weak earnings, the days-to-cover ratio sits at just 0.3 days. That means it would take less than a third of a day of normal trading volume to cover all remaining short positions. The company also carries a quick ratio of 1.92 and a debt-to-equity ratio of 0.15, suggesting manageable short-term liquidity, according to Watchlist News.
Broader Biotech Short Squeeze Pattern Takes Shape in July
The trend is not limited to just a few names. Trinity Biotech saw short interest drop about 95%, to 17,142 shares. Neuren Pharmaceuticals fell 89.2%, according to Watchlist News. Even Vision Marine Technologies recorded a 79.3% drop, falling from 977,857 shares to 202,304 shares by late July, per Defense World.
Taken together, the July data shows a clear shift. Across niche biotech, diagnostics, and life sciences stocks, short sellers are backing away. Whether that reflects genuine optimism or simply a lack of conviction among bears, the numbers point in one direction: fewer bets against these small companies.
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