Kardigan, Inc. (NASDAQ:KARD) Sees Significant Growth in Short Interest

Key Points

• Short interest surged 73% to 4.45 million shares as of September 30, representing 4.8% of Kardigan’s outstanding stock and 3.8 days to cover based on average trading volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $38.80, despite ratings ranging from “Sell” to “Strong Buy.”
• Kardigan shares fell 0.3% to $13.48 and remain well below their 52-week high of $27.00; the company also reported a quarterly loss of $4.61 per share.

Kardigan, Inc. (NASDAQ:KARD - Get Free Report) was the target of a large increase in short interest in September. As of September 30th, there was short interest totaling 4,445,126 shares, an increase of 73.0% from the September 15th total of 2,568,799 shares. Currently, 4.8% of the company's stock are short sold. Based on an average daily volume of 1,179,559 shares, the days-to-cover ratio is presently 3.8 days.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Weiss Ratings initiated coverage on shares of Kardigan in a research note on Monday, September 14th. They issued a "sell (d)" rating on the stock. JPMorgan Chase & Co. reduced their price target on shares of Kardigan from $51.00 to $46.00 and set an "overweight" rating for the company in a research report on Tuesday, August 25th. Jefferies Financial Group initiated coverage on shares of Kardigan in a research report on Monday, July 13th. They set a "buy" rating and a $40.00 price target for the company. Leerink Partners initiated coverage on shares of Kardigan in a report on Monday, July 13th. They issued an "outperform" rating and a $37.00 price objective for the company. Finally, UBS Group began coverage on shares of Kardigan in a report on Monday. They issued a "buy" rating and a $25.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $38.80.

Kardigan Trading Down 0.3%

Shares of NASDAQ:KARD traded down $0.04 during midday trading on Thursday, reaching $13.48. 205,469 shares of the company's stock traded hands, compared to its average volume of 511,608. The company has a market capitalization of $1.26 billion and a P/E ratio of -4.68. Kardigan has a one year low of $12.23 and a one year high of $27.00. The stock's 50 day moving average price is $18.18.

Kardigan (NASDAQ:KARD - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported ($4.61) earnings per share for the quarter. Equities research analysts anticipate that Kardigan will post -3.41 EPS for the current fiscal year.

Institutional Trading of Kardigan

A number of large investors have recently made changes to their positions in KARD. Legal & General Group Plc purchased a new position in shares of Kardigan during the second quarter valued at approximately $119,000. Squarepoint Ops LLC bought a new position in Kardigan during the second quarter valued at approximately $247,000. Alyeska Investment Group L.P. bought a new position in Kardigan during the second quarter valued at approximately $716,000. Bank of America Corp DE purchased a new stake in Kardigan in the second quarter worth approximately $1,283,000. Finally, Citadel Advisors LLC purchased a new stake in Kardigan in the second quarter worth approximately $2,862,000.

Kardigan Company Profile

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