BTGO (NYSE:BTGO) Shares Shorted: Short Interest Up 70.2% in September

Key Points

• BTGO short interest surged 70.2% in September to 3.92 million shares, representing 3.3% of shares outstanding and a days-to-cover ratio of 1.5.
• Shares recently traded at $6.48, near the lower end of their 12-month range, while the company reported a larger-than-expected quarterly loss of $0.16 per share. BTGO has also authorized a $50 million share repurchase program.
• Analyst sentiment remains a “Moderate Buy,” with a consensus price target of $12.77, although several firms recently lowered their targets. Institutional investors including Tidal Investments, ParaFi Capital and State Street initiated positions.

BTGO (NYSE:BTGO - Get Free Report) saw a significant increase in short interest during the month of September. As of September 30th, there was short interest totaling 3,919,197 shares, an increase of 70.2% from the September 15th total of 2,302,906 shares. Currently, 3.3% of the shares of the company are sold short. Based on an average daily volume of 2,648,318 shares, the days-to-cover ratio is presently 1.5 days.

Insider Activity

In related news, CFO Edward Reginelli sold 9,021 shares of the business's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $4.89, for a total transaction of $44,112.69. Following the transaction, the chief financial officer owned 582,489 shares of the company's stock, valued at approximately $2,848,371.21. The trade was a 1.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael Belshe sold 38,691 shares of the company's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $4.89, for a total transaction of $189,198.99. Following the transaction, the chief executive officer owned 798,464 shares of the company's stock, valued at approximately $3,904,488.96. The trade was a 4.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 48,134 shares of company stock valued at $235,430 in the last three months.

Institutional Trading of BTGO

Several hedge funds and other institutional investors have recently modified their holdings of BTGO. Tidal Investments LLC acquired a new position in shares of BTGO during the second quarter worth about $10,327,000. ParaFi Capital LP acquired a new stake in BTGO in the 2nd quarter valued at approximately $1,939,000. Finally, State Street Corp bought a new stake in BTGO in the 2nd quarter valued at approximately $1,202,000.

BTGO Price Performance

Shares of BTGO stock traded up $0.21 during trading hours on Thursday, hitting $6.48. The company's stock had a trading volume of 689,693 shares, compared to its average volume of 1,315,624. BTGO has a 12 month low of $4.65 and a 12 month high of $24.50. The stock has a 50 day moving average of $6.88 and a 200 day moving average of $7.10. The company has a market capitalization of $762.19 million and a PE ratio of -4.47.

BTGO (NYSE:BTGO - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The company reported ($0.16) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.13). The firm had revenue of $4.33 billion during the quarter. Equities analysts expect that BTGO will post -0.27 EPS for the current year.

BTGO announced that its Board of Directors has approved a share repurchase program on Wednesday, June 17th that authorizes the company to buy back $50.00 million in shares. This buyback authorization authorizes the company to buy up to 7.9% of its shares through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Weiss Ratings reaffirmed a "sell (d)" rating on shares of BTGO in a report on Friday, October 9th. Rosenblatt Securities reduced their price objective on BTGO from $15.00 to $10.00 and set a "buy" rating on the stock in a research note on Thursday, August 13th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $15.00 price objective on shares of BTGO in a report on Friday, August 21st. Wells Fargo & Company reduced their target price on shares of BTGO from $13.00 to $11.00 and set an "overweight" rating on the stock in a research note on Thursday, August 13th. Finally, Citigroup dropped their price objective on BTGO from $17.00 to $10.00 and set a "buy" rating for the company in a report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $12.77.

About BTGO

BitGo Holdings, Inc NYSE: BTGO is a digital asset infrastructure company that provides custody, security, trading and financial services for institutional participants in the cryptocurrency market. Its platform is designed to help businesses securely store, manage and transact in digital assets.

The company's services include institutional cryptocurrency custody, hot and cold wallet solutions, settlement, staking, lending and trading-related services. BitGo also provides technology and operational infrastructure intended to support asset managers, exchanges, financial institutions, corporations and other organizations involved with digital assets.

BitGo was founded in 2013 by Mike Belshe and Ben Davenport and is headquartered in Palo Alto, California.

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