Short Interest in Adidas AG (OTCMKTS:ADDYY) Expands By 223.4%

Key Points

• Short interest in Adidas surged 223.4% in June, rising to 78,600 shares from 24,305 shares two weeks earlier. Despite the jump, the stock still had only 0.4 days to cover and essentially 0.0% of shares sold short.
• Institutional and analyst sentiment remains constructive. GAMMA Investing LLC boosted its Adidas stake by 53.5% in the second quarter, and analysts currently rate the stock a consensus Moderate Buy with a target price of $146.02.
• Adidas posted solid recent financial results and stock performance, opening at $104.04 with shares trading between a 52-week low of $75.19 and high of $123.33. The company beat quarterly EPS and revenue estimates in its latest report, and analysts expect full-year EPS of 5.48.

Adidas AG (OTCMKTS:ADDYY - Get Free Report) was the target of a significant increase in short interest in June. As of June 30th, there was short interest totaling 78,600 shares, an increase of 223.4% from the June 15th total of 24,305 shares. Based on an average daily trading volume, of 183,005 shares, the days-to-cover ratio is currently 0.4 days. Currently, 0.0% of the shares of the stock are sold short.

Institutional Trading of Adidas

A hedge fund recently raised its stake in Adidas stock. GAMMA Investing LLC grew its stake in shares of Adidas AG (OTCMKTS:ADDYY - Free Report) by 53.5% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,101 shares of the company's stock after acquiring an additional 732 shares during the quarter. GAMMA Investing LLC's holdings in Adidas were worth $216,000 at the end of the most recent quarter.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on ADDYY shares. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Adidas in a report on Tuesday, June 30th. Zacks Research raised shares of Adidas from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. JPMorgan Chase & Co. began coverage on Adidas in a research report on Thursday, July 2nd. They set an "overweight" rating for the company. Finally, Royal Bank Of Canada raised Adidas from a "sector perform" rating to an "outperform" rating in a research note on Wednesday, June 10th. Seven investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Adidas currently has a consensus rating of "Moderate Buy" and a consensus target price of $146.02.

Adidas Price Performance

Shares of OTCMKTS ADDYY opened at $104.04 on Monday. Adidas has a 1 year low of $75.19 and a 1 year high of $123.33. The firm's 50 day moving average price is $95.66 and its 200 day moving average price is $90.32. The firm has a market cap of $37.18 billion, a P/E ratio of 22.92, a price-to-earnings-growth ratio of 1.37 and a beta of 1.24. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.71 and a current ratio of 1.35.

Adidas (OTCMKTS:ADDYY - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $1.58 earnings per share for the quarter, beating the consensus estimate of $1.53 by $0.05. Adidas had a return on equity of 22.97% and a net margin of 5.52%.The company had revenue of $7.71 billion during the quarter, compared to the consensus estimate of $7.36 billion. As a group, sell-side analysts anticipate that Adidas will post 5.48 earnings per share for the current year.

About Adidas

Adidas AG is a global designer, manufacturer and marketer of athletic footwear, apparel and accessories, headquartered in Herzogenaurach, Germany. Founded by Adolf "Adi" Dassler in 1949, the company has grown into one of the world's leading sportswear brands, offering products for running, soccer, basketball and a wide range of other sports as well as lifestyle and fashion markets.

Adidas's product portfolio includes performance footwear, sports apparel, team uniforms, equipment and accessories sold under the Adidas brand and through various collaborations.

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