The Lovesac Short Interest Ratio and Short Volume

Short interest is the volume of The Lovesac shares that have been sold short but have not yet been closed out or covered. As of March 31st, investors have sold 2,130,000 shares of LOVE short. 18.21% of The Lovesac's shares are currently sold short. View details.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. The Lovesac currently has a short interest ratio of 6.0.

Companies that have a short interest as a percentage of float below 10% indicates positive investor sentiment and few short sellers. Stocks with a short interest percentage above 10% is considered high, suggesting some investors are pessimistic about the stock. Companies with a short interest percentage of 20% or more indicates widespread negative sentiment. 18.21% of The Lovesac's floating shares are currently sold short.

The Lovesac saw a increase in short interest in March. As of March 31st, there was short interest totaling 2,130,000 shares, an increase of 8.1% from the previous total of 1,970,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

The Lovesac currently has issued a total of 15,018,000 shares. Some of The Lovesac's outstanding shares are available for trading, while others are subject to various restrictions. The public float, also referred to as floating shares or "the float", are shares that publicly owned, unrestricted and available to trade on the open market. The Lovesac currently has a public float of 11,700,000 shares.

18.21% of The Lovesac's shares are currently sold short. Here is how the short interest of companies in the sector of "retail/wholesale" compare to The Lovesac: Asbury Automotive Group, Inc. (9.36%), Woolworths Holdings Limited (0.00%), BigCommerce Holdings, Inc. (16.43%), Beacon Roofing Supply, Inc. (4.29%), Stamps.com Inc. (0.00%), Urban Outfitters, Inc. (6.89%), Insight Enterprises, Inc. (6.13%), Revolve Group, Inc. (0.00%), Overstock.com, Inc. (0.00%), and Brinker International, Inc. (8.17%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Analog Devices, Inc. ($5.84 billion), Aon plc ($5.47 billion), Charter Communications, Inc. ($5.36 billion), ViacomCBS Inc. ($3.99 billion), Snap Inc. ($3.77 billion), Airbnb, Inc. ($2.90 billion), Peloton Interactive, Inc. ($2.43 billion), Discovery, Inc. ($2.38 billion), The Kroger Co. ($2.28 billion), and Expedia Group, Inc. ($2.18 billion). View all of the most shorted stocks.

Short selling LOVE is an investing strategy that aims to generate trading profit from The Lovesac as its price is falling. The Lovesac's stock is trading down $3.40 today. To short The Lovesac stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that The Lovesac will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for The Lovesac occurs when it has a large amount of short interest and its stock increases in price. This forces short sellers to cover their short interest positions by buying actual shares of LOVE, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including LOVE, twice per month. The most recent reporting period available is March, 31 2021.