Arxis, Inc. (NASDAQ:ARXS) Shares Shorted: Short Interest Up 67.1% in September

Key Points

• Arxis short interest surged 67.1% in September to 5.95 million shares, representing 1.4% of shares outstanding and a 4.5-day days-to-cover ratio.
• Institutional investors increased exposure, with Squarepoint Ops, Alyeska Investment Group, State Street, BlueCrest and Grandeur Peak collectively establishing new positions during the second quarter.
• Analyst sentiment remains positive: 11 analysts rate Arxis a Buy and two rate it Hold, producing a “Moderate Buy” consensus and an average price target of $54.64. The company also exceeded quarterly EPS expectations and reported 25% year-over-year revenue growth.

Arxis, Inc. (NASDAQ:ARXS - Get Free Report) was the target of a large growth in short interest in September. As of September 30th, there was short interest totaling 5,948,422 shares, a growth of 67.1% from the September 15th total of 3,559,814 shares. Currently, 1.4% of the company's stock are short sold. Based on an average trading volume of 1,334,663 shares, the days-to-cover ratio is currently 4.5 days.

Hedge Funds Weigh In On Arxis

Several large investors have recently modified their holdings of ARXS. Squarepoint Ops LLC bought a new position in Arxis in the 2nd quarter worth about $19,506,000. Alyeska Investment Group L.P. bought a new stake in shares of Arxis during the second quarter valued at approximately $13,842,000. State Street Corp purchased a new stake in shares of Arxis in the second quarter valued at approximately $9,948,000. BlueCrest Capital Management Ltd purchased a new stake in shares of Arxis in the second quarter valued at approximately $7,389,000. Finally, Grandeur Peak Global Advisors LLC purchased a new position in Arxis during the 2nd quarter worth $2,740,000.

Analyst Ratings Changes

A number of analysts have commented on ARXS shares. Citigroup lifted their target price on Arxis from $61.00 to $67.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Wells Fargo & Company upped their price target on Arxis from $52.00 to $63.00 and gave the company an "overweight" rating in a report on Tuesday, August 4th. Morgan Stanley reaffirmed an "overweight" rating and set a $62.00 price target on shares of Arxis in a report on Monday, August 3rd. Weiss Ratings raised Arxis from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $60.00 price objective on shares of Arxis in a report on Sunday, August 2nd. Eleven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Arxis has an average rating of "Moderate Buy" and an average target price of $54.64.

Arxis Stock Performance

Shares of ARXS stock opened at $53.81 on Friday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 3.79 and a current ratio of 5.21. Arxis has a 12-month low of $33.15 and a 12-month high of $61.50. The stock has a 50 day moving average of $52.20.

Arxis (NASDAQ:ARXS - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of ($0.07) by $0.35. The company had revenue of $500.73 million during the quarter. The company's revenue was up 25.0% compared to the same quarter last year. On average, analysts predict that Arxis will post 0.57 earnings per share for the current year.

About Arxis

We are a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting-edge performance in extreme environments. Leveraging significant intellectual property (“IP”) and world-class engineering capabilities, we design and deliver innovative solutions that address some of our customers' most complex performance needs. Arxis is the result of a deliberate and disciplined strategy executed by our sponsor, Arcline, and the Arxis management team to create a purpose-built, cohesive business through targeted acquisitions with similar product and end market characteristics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.