As the S&P 500's most shorted stock with a 20% float, Charter is ready for a squeeze. After falling 50%, a 35% rally has pushed the squeeze score to 100.

The company has $95B in debt against a $35B market cap, the highest ratio in the S&P. This leverage, with a BB rating, is one of the reasons for shorting.

With the long interest relatively constant and short interest rising, the stock passed into battleground territory in the Fall and the current L/S ratio is 0.8.

Charter Communications' historical short interest data indicates that positions have doubled over the past year.

The stock declined 50% while short interest rose proportionally—a momentum strategy where shorts sell on the way down, triggering a chain reaction of lower stock prices and increased shorting.

It is currently the most shorted stock in the S&P 500; CHTR short interest % of float now sits at 20.4%. One driver of this short squeeze risk is the limited liquidity, as only two-thirds of the stock is in the public float.

The stock remains profitable, and the P/E ratio is compressing as the stock price declines—a setup that often pits value investors against momentum shorts. Recently, sell recommendations have grown alongside the short position, currently at 28%—converging with buys, which have fallen from 44%.

With the Crowded shorts data score currently at 75, any rally in the stock can push the Short squeeze score above 70; it currently sits at 100 after the stock rallied 35% in the past two weeks.

Despite this technical setup, a full-scale short squeeze has not yet materialized, though stock borrow rates remain a key metric to watch for signs of a forced exit.

The 35%+ rally (spanning late Jan to early Feb 2026) was driven by a shift in short selling sentiment data from "broadband collapse" to "stabilization," as Charter proved its ability to stem subscriber losses through new product offerings and strong mobile growth.

This turnaround was fueled by share buybacks, analyst upgrades, and growth in mobile, video services, and WiFi bundling. This move was punctuated by positive earnings and a 7% single-day move higher.

Last year, the primary concern was broadband subscriber losses and competition from fiber and 5G fixed wireless. Charter’s $96.2B debt load remains significant compared to its market cap, representing the highest ratio in the S&P.

The bonds trade from 230 to 320bps over Treasuries, reflecting the heavy leverage of the company. This capital structure contributes to the high volatility of the stock.

The notes are rated BB, positioned between high-yield and Investment Grade depending on their secured status or rating agency.

CHTR is a Battleground Stock with a current L/S ratio of 0.8; it has maintained this status since September due to the persistent rise in real-time short interest.

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