Cannabis Stock Short Interest Declining
Author:
Ihor Dusaniwsky
Managing Director of Predictive Analytics, S3 Partners
Matthew Unterman
Director of Predictive Analytics, S3 Partners
Total short interest in the cannabis sector has been steadily declining for over a year, with short interest of the cannabis portfolio we are following declining from $3.14 billion in May 2021 to $1.57 billion in December 2021 to $632 million today. We follow 100 U.S. and Canadian cannabis companies made up of 163 securities (some companies are dual listed in both the U.S. and Canada). Short selling is highly concentrated in a handful of names, with short interest of the top twenty most shorted stocks in the sector making up 97% of total short selling. Tilray Brands Inc (TLRY US, TLRY CN) and Canopy Growth Corp (CGC US, WEED CN) continue to be the top two shorts in the sector, making up 57% of total short selling.
Short Interest in Cannabis Stocks (as of 07.13.22)
Name
USD Ticker
CAD Ticker
Short Interest
Tilray Brands Inc
TLRY US
TLRY CN
$244,440,121
Canopy Growth Corp
CGC US
WEED CN
$113,671,945
Sundial Growers Inc
SNDL US
N.A.
$66,259,908
Cronos Group Inc
CRON US
CRON CN
$57,897,276
Aurora Cannabis Inc
ACB US
ACB CN
$42,293,742
Trulieve Cannabis Corp
TCNNF US
TRUL CN
$14,200,705
Organigram Holdings Inc
OGI US
OGI CN
$13,359,263
Verano Holdings Corp
VRNOF US
VRNO CN
$11,985,094
HEXO Corp
HEXO US
HEXO CN
$11,438,391
WM Technology Inc
MAPS US
N.A.
$9,772,751
Cresco Labs Inc
CRLBF US
CL CN
$6,549,604
Leafly Holdings Inc
LFLY US
N.A.
$5,705,849
Curaleaf Holdings Inc
CURLF US
CURA CN
$4,787,348
AFC Gamma Inc
AFCG US
N.A.
$3,424,749
Valens Semiconductor Ltd
VLN US
VLNS CN
$2,555,565
Green Thumb Industries Inc
GTBIF US
GTII CN
$2,232,494
Charlottes Web Holdings Inc
CWBHF US
CWEB CN
$1,759,872
High Tide Inc
HITI US
HITI CN
$1,442,671
Jushi Holdings Inc
JUSHF US
JUSH CN
$1,312,611
Ayr Wellness Inc
AYRWF US
AYR/A CN
$782,511
Top Twenty
-
-
$615,872,471
Total Sector
-
-
$632,046,991
A change in short interest is made up of the mark-to-market price changes of shares shorted plus the change in overall shares shorted. The Cannabis Sector rally had stalled in mid-February with the ETFMG Alternative Harvest ETF (MJ US) up +131% from December 31,2021 to February 10, 2021, but down -83% since February 10, 2021. Short interest in the cannabis sector declined by $1.89 billion since February 10, 2021, by -$1.04 billion year-to-date and -$153 million over the last thirty days. Cannabis short sellers were seeing the market value of their shorts decrease but were not actively replacing that short exposure. Overall, the cannabis sector is not a favorite short, even though the trades have been profitable in 2022.
Cannabis Stock Short Selling Over Time
Name
USD Ticker
CAD Ticker
Short Interest
2/10/21 Change
12/31/21
Change
6/13/22 Change
Tilray Brands Inc
TLRY US
TLRY CN
$244,440,121
$(302,547,331)
$185,330,343)
$(438,075)
Canopy Growth Corp
CGC US
WEED CN
$113,671,945
$(630,803,042)
(414,811,303)
$(100,639,043)
Sundial Growers Inc
SNDL US
N.A.
$66,259,908
$(125,662,091)
$(88,372,161)
$(9,082,870)
Cronos Group Inc
CRON US
CRON CN
$57,897,276
$(127,435,119)
$(27,777,677)
$2,424,755
Aurora Cannabis Inc
ACB US
ACB CN
$42,293,742
$(337,371,519)
$(173,692,496)
$(8,753,620)
Trulieve Cannabis Corp
TCNNF US
TRUL CN
$14,200,705
$244,620
$(3,478,476)
$(8,101,578)
Organigram Holdings Inc
OGI US
OGI CN
$13,359,263
$(62,126,821)
$(25,002,692)
$(2,671,373)
Verano Holdings Corp
VRNOF US
VRNO CN
$11,985,094
$(8,140,473)
$1,855,529
$(4,767,967)
HEXO Corp
HEXO US
HEXO CN
$11,438,391
$(112,914,769)
$(36,242,168)
$(3,206,042)
WM Technology Inc
MAPS US
N.A.
$9,772,751
$(24,759,656)
$(2,724,560)
$(1,780,734)
Cresco Labs Inc
CRLBF US
CL CN
$6,549,604
$(11,207,987)
$2,866,692
$1,359,921)
Leafly Holdings Inc
LFLY US
N.A.
$5,705,849
$5,497,017
$37,734
$(4,650,210)
Curaleaf Holdings Inc
CURLF US
CURA CN
$4,787,348
$(14,747,146)
$(12,335,667)
$1,164,402)
AFC Gamma Inc
AFCG US
N.A.
$3,424,749
$2,297,985
$(1,261,056)
$733,121
Valens Semiconductor Ltd
VLN US
VLNS CN
$2,555,565
$(7,381,531)
$(1,495,557)
$338,227
Green Thumb Industries Inc
GTBIF US
GTII CN
$2,232,494
$(11,774,308)
$(12,621,418)
$(4,838,727)
Charlottes Web Holdings Inc
CWBHF US
CWEB CN
$1,759,872
$(8,437,244)
$(2,406,177)
$(304,989)
High Tide Inc
HITI US
HITI CN
$1,442,671
$(3,005,608)
$(3,897,366)
$(212,120)
Jushi Holdings Inc
JUSHF US
JUSH CN
$1,312,611
$(2,903,857)
$293,157
$175,181
Ayr Wellness Inc
AYRWF US
AYR/A CN
$ 782,511
$ (2,618,214)
$(1,599,160)
$(692,141)
Top Twenty
-
-
$615,872,471
$(1,785,797,094)
$(987,995,165)
$(148,992,526)
Total Sector
-
-
$632,046,991
$(1,892,762,320)
$(1,038,684,091)
$(152,563,988)
Since February 10, 2020, cannabis sector short interest in the top twenty most shorted stocks in the sector declined by $1.79 billion, which was made up of $1.94 billion of mark-to-market decrease in the value of stocks shorts slightly offset by $163 million in new short selling. But, over the last thirty days the $149 million decrease in short interest was made up of $115 million of mark-to-market declines along with $34 million of short covering. Cannabis short sellers are actively exiting their positions.
Cannabis Stocks: Change in Shares Shorted
Name
USD
Ticker
CAD Ticker
2/10/21
$Change
12/31/21 $Change
6/13/22 $Change
Tilray Brands Inc
TLRY US
TLRY CN
$135,598,295
$54,201,983
$11,223,005
Canopy Growth Corp
CGC US
WEED CN
$46,183,261
$(21,740,737)
-$20,822,571
Sundial Growers Inc
SNDL US
N.A.
-$12,884,734
$(15,936,368)
-$6,081,987
Cronos Group Inc
CRON US
CRON CN
-$14,031,281
$(5,913,861)
-$2,806,746
Aurora Cannabis Inc
ACB US
ACB CN
-$13,284,116
$(8,844,595)
-$5,332,152
Trulieve Cannabis Corp
TCNNF US
TRUL CN
$10,252,227
$6,389,296
-$4,212,148
Organigram Holdings Inc
OGI US
OGI CN
-$15,963,535
$(9,605,704)
-$2,996,177
Verano Holdings Corp
VRNOF US
VRNO CN
$5,760,649
$7,134,895
-$440,944
HEXO Corp
HEXO US
HEXO CN
$8,008,760
$(2,238,101)
-$106,031
WM Technology Inc
MAPS US
N.A.
$2,896,638
$3,320,557
$2,433,163
Cresco Labs Inc
CRLBF US
CL CN
$2,463,178
$4,887,672
-$286,267
Leafly Holdings Inc
LFLY US
N.A.
$5,613,244
$3,189,842
-$1,815,027
Curaleaf Holdings Inc
CURLF US
CURA CN
-$1,777,770
$(5,155,465)
-$166,924
AFC Gamma Inc
AFCG US
N.A.
$2,675,993
$175,560
$996,791
Valens Semiconductor Ltd
VLN US
VLNS CN
$1,710,463
$1,419,515
$56,893
Green Thumb Industries Inc
GTBIF US
GTII CN
-$1,788,665
$(4,008,923)
-$3,540,446
Charlottes Web Holdings Inc
CWBHF US
CWEB CN
$642,250
$27,925
$27,133
High Tide Inc
HITI US
HITI CN
$202,278
$(1,136,722)
-$13,733
Jushi Holdings Inc
JUSHF US
JUSH CN
$219,293
$782,282
-$25,883
Ayr Wellness Inc
AYRWF US
AYR/A CN
$161,878
$(13,080)
-$451,644
Top Twenty
-
-
$162,658,306
$6,935,970
-$34,361,696
Short interest % of Float of the top twenty most shorted cannabis stocks has declined from 16.67% to 13.58% in 2022. This confirms the fact that even as the stock prices of these cannabis stocks has decreased the number of shares shorted have decreased as well.
Cannabis Stocks: Short Interest as a % of Float
Name
USD Ticker
CAD Ticker
12/31/21
SI % Float
6/13/22
SI % Float
7/13/22
SI % Float
Tilray Brands Inc
TLRY US
TLRY CN
13.01%
15.17%
15.88%
Canopy Growth Corp
CGC US
WEED CN
23.59%
22.59%
20.86%
Sundial Growers Inc
SNDL US
N.A.
12.88%
9.63%
8.78%
Cronos Group Inc
CRON US
CRON CN
10.95%
10.38%
9.90%
Aurora Cannabis Inc
ACB US
ACB CN
19.90%
16.18%
14.34%
Trulieve Cannabis Corp
TCNNF US
TRUL CN
0.53%
1.22%
0.93%
Organigram Holdings Inc
OGI US
OGI CN
8.95%
6.07%
4.96%
Verano Holdings Corp
VRNOF US
VRNO CN
0.54%
0.91%
0.88%
HEXO Corp
HEXO US
HEXO CN
19.80%
13.50%
13.35%
WM Technology Inc
MAPS US
N.A.
4.28%
3.36%
4.62%
Cresco Labs Inc
CRLBF US
CL CN
0.30%
1.12%
1.09%
Leafly Holdings Inc
LFLY US
N.A.
4.90%
5.92%
4.48%
Curaleaf Holdings Inc
CURLF US
CURA CN
0.48%
0.24%
0.23%
AFC Gamma Inc
AFCG US
N.A.
1.95%
1.12%
1.59%
Valens Semiconductor Ltd
VLN US
VLNS CN
2.79%
4.53%
4.66%
Green Thumb Industries Inc
GTBIF US
GTII CN
0.41%
0.35%
0.13%
Charlottes Web Holdings Inc
CWBHF US
CWEB CN
2.95%
2.77%
2.85%
High Tide Inc
HITI US
HITI CN
2.41%
1.31%
1.30%
Jushi Holdings Inc
JUSHF US
JUSH CN
0.20%
0.47%
0.46%
Ayr Wellness Inc
AYRWF US
AYR/A CN
0.31%
0.46%
0.29%
Top Twenty
-
-
16.67%
14.59%
13.58%
The top twenty cannabis shorts in the sector are up $807 million in net-of-financing mark-to-market profits in 2022. Cannabis shorts are up $20 million in mark-to-market profits in July, but we are seeing several stocks (Tilray Brands, Cronos Group and Organigram Holdings) posting over $1 million losses for the month.
Cannabis Stocks: Short Selling $P/L
Cannabis Stocks MTM P\L
USD Ticker
CAD Ticker
YTD MTM P\L
MTD MTM P\L
Tilray Brands Inc
TLRY US
TLRY CN
$278,904,657
$(5,970,988)
Canopy Growth Corp
CGC US
WEED CN
$291,453,675
$25,024,404
Sundial Growers Inc
SNDL US
N.A.
$45,094,488
$2,875,463
Cronos Group Inc
CRON US
CRON CN
$16,452,817
$(1,224,950)
Aurora Cannabis Inc
ACB US
ACB CN
$104,796,861
$1,318,436
Trulieve Cannabis Corp
TCNNF US
TRUL CN
$8,011,420
$167,195
Organigram Holdings Inc
OGI US
OGI CN
$9,480,324
$(1,972,534)
Verano Holdings Corp
VRNOF US
VRNO CN
$14,238,016
$28,555
HEXO Corp
HEXO US
HEXO CN
$2,571,146
$86,984
WM Technology Inc
MAPS US
N.A.
$7,276,870
$479,402
Cresco Labs Inc
CRLBF US
CL CN
$2,994,749
$(359,920)
Leafly Holdings Inc
LFLY US
N.A.
$8,172,122
$126,336
Curaleaf Holdings Inc
CURLF US
CURA CN
$6,154,848
$6,965
AFC Gamma Inc
AFCG US
N.A.
$1,692,497
$(115,566)
Valens Semiconductor Ltd
VLN US
VLNS CN
$5,595,734
$(61,452)
Green Thumb Industries Inc
GTBIF US
GTII CN
$222,052
$(74,351)
Charlottes Web Holdings Inc
CWBHF US
CWEB CN
$844,431
$105,187
High Tide Inc
HITI US
HITI CN
$744,985
$56,948
Jushi Holdings Inc
JUSHF US
JUSH CN
$722,559
$(201,152)
Ayr Wellness Inc
AYRWF US
AYR/A CN
$1,742,948
$(9,986)
Top Twenty
-
-
$807,167,198
$20,284,975
