Brazil Potash Corp. (NYSEAMERICAN:GRO) Sees Large Increase in Short Interest

Key Points

• Brazil Potash’s short interest rose 60.1% from 187,844 to 300,714 shares between August 15 and August 31, representing 0.6% of shares outstanding and 1.1 days to cover.
• Institutional interest increased, with AWM Investment Company initiating a roughly $10.75 million position and several other funds substantially boosting their holdings.
• Shares gained 1.7% to $2.36, while analysts maintained a generally positive outlook: the stock has a “Moderate Buy” consensus rating and a $5.00 average price target.

Brazil Potash Corp. (NYSEAMERICAN:GRO - Get Free Report) saw a large growth in short interest in the month of August. As of August 31st, there was short interest totaling 300,714 shares, a growth of 60.1% from the August 15th total of 187,844 shares. Currently, 0.6% of the company's shares are short sold. Based on an average trading volume of 281,549 shares, the days-to-cover ratio is presently 1.1 days.

Institutional Trading of Brazil Potash

Several hedge funds have recently bought and sold shares of the stock. AWM Investment Company Inc. purchased a new stake in shares of Brazil Potash during the 2nd quarter valued at about $10,750,000. Hollencrest Capital Management raised its position in Brazil Potash by 223.2% during the first quarter. Hollencrest Capital Management now owns 347,435 shares of the company's stock valued at $1,126,000 after purchasing an additional 239,936 shares during the period. Renaissance Technologies LLC lifted its stake in shares of Brazil Potash by 130.4% in the 1st quarter. Renaissance Technologies LLC now owns 344,700 shares of the company's stock valued at $1,117,000 after purchasing an additional 195,100 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of Brazil Potash by 5,630.7% in the 1st quarter. Bank of America Corp DE now owns 156,277 shares of the company's stock worth $506,000 after purchasing an additional 153,550 shares during the period. Finally, Walleye Capital LLC purchased a new position in shares of Brazil Potash in the 1st quarter worth approximately $274,000.

Brazil Potash Stock Up 1.7%

Shares of NYSEAMERICAN:GRO traded up $0.04 during trading on Thursday, reaching $2.36. 88,431 shares of the stock traded hands, compared to its average volume of 528,880. Brazil Potash has a 52-week low of $1.86 and a 52-week high of $3.99. The firm's 50-day moving average price is $2.29.

Brazil Potash (NYSEAMERICAN:GRO - Get Free Report) last issued its quarterly earnings data on Friday, August 14th. The company reported ($0.13) EPS for the quarter.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Canaccord Genuity Group initiated coverage on Brazil Potash in a research note on Tuesday, July 21st. They set a "speculative buy" rating and a $5.00 target price on the stock. Zacks Research raised shares of Brazil Potash from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. Finally, HC Wainwright reiterated a "buy" rating and set a $4.75 target price on shares of Brazil Potash in a report on Wednesday, August 26th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $5.00.

About Brazil Potash

Brazil Potash Corp. is a mineral development company focused on advancing potash resources in Brazil. Its principal asset is the Autazes Potash Project in the state of Amazonas, which is intended to produce potassium chloride, a key fertilizer ingredient used in agricultural production.

The company is developing an integrated mining and processing operation designed to supply potash to Brazil's agricultural market. Brazil is one of the world's major agricultural producers and relies heavily on imported fertilizer, giving domestic potash production strategic importance.

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