Robinhood’s stock is hot with investors – and short sellers, too.
More than 12.5 million HOOD shares — or roughly 25 percent of the float — were shorted as of the close of trading on Wednesday, according to data from S3 Partners. By comparison, the average short interest in a company is 5 percent.
And short interest in Robinhood will likely only escalate from here.
“Short selling today is once again muted due to lack of stock borrow supply … as well as the high cost to short eating into the expected profits of the short trade,” the report states.
As supply expands in the coming weeks, S3 expects this will give traders eager to short stocks even more opportunity to do so.
Not everyone shorting Robinhood is betting against the stock — some of the shorting is day traders taking advantage of the stock’s volatility.
“With price volatility comes more long-buying and short-selling action,” Ihor Dusaniwsky of S3 Partners told The Post.
The new data comes after rampant speculation institutions and retail traders could band together to make Robinhood a short target.
One caveat traders are hyper aware of in 2021? “With meme stocks you never know what could happen next,” Dusaniwsky adds.