The9 Limited (NASDAQ:NCTY) Short Interest Up 187.7% in August

Key Points

• Short interest in The9 surged 187.7% in August to 334,804 shares, representing about 3.2% of shares outstanding and a short-interest ratio of 0.9 days.
• The stock opened at $4.18, with a market capitalization of approximately $63.66 million, while its shares had recently traded between $3.14 and $11.60 over the prior year.
• Analyst sentiment remains negative: The9 has a consensus rating of “Sell”, despite Wall Street Zen upgrading the stock to “Hold.”

The9 Limited (NASDAQ:NCTY - Get Free Report) saw a large increase in short interest during the month of August. As of August 31st, there was short interest totaling 334,804 shares, an increase of 187.7% from the August 15th total of 116,368 shares. Based on an average daily trading volume, of 361,854 shares, the short-interest ratio is presently 0.9 days. Approximately 3.2% of the shares of the company are short sold.

The9 Trading Up 11.8%

Shares of NASDAQ:NCTY opened at $4.18 on Friday. The company has a 50 day moving average of $4.44 and a 200-day moving average of $5.07. The firm has a market cap of $63.66 million, a P/E ratio of 0.70 and a beta of 2.09. The9 has a twelve month low of $3.14 and a twelve month high of $11.60.

The9 (NASDAQ:NCTY - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The technology company reported $2.18 EPS for the quarter. The firm had revenue of $1.86 million during the quarter.

Institutional Investors Weigh In On The9

A hedge fund recently raised its stake in The9 stock. Invesco Ltd. lifted its stake in The9 Limited (NASDAQ:NCTY - Free Report) by 57.1% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 32,811 shares of the technology company's stock after purchasing an additional 11,931 shares during the quarter. Invesco Ltd. owned 0.26% of The9 worth $255,000 as of its most recent filing with the Securities and Exchange Commission (SEC). Hedge funds and other institutional investors own 0.54% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on NCTY. Wall Street Zen upgraded The9 to a "hold" rating in a research note on Saturday, August 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of The9 in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock currently has a consensus rating of "Sell".

About The9

The9 Limited is a Shanghai-based digital entertainment company specializing in the development, publishing and operation of online and mobile games. Since its founding in 1999, the company has built a portfolio of multiplayer titles that combine in-house development capabilities with strategic licensing agreements. The9's offerings span PC and mobile platforms, and its products include fantasy, role-playing and casual games tailored primarily to the mainland China market.

Historically, The9 gained prominence through a landmark partnership with an international game developer, securing exclusive rights to operate the popular World of Warcraft franchise in China from 2004 to 2009.

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