Cisco’s (CSCO) short interest has grown significantly as it reaches its price target, suggesting potential post-earnings sell-off. Historically, when short interest rises before earnings, CSCO often reverses recent gains. The current uptick in both stock price and short interest indicates a likely trend reversal post-earnings. • CSCO reports today after the market close. • The stock typically moves 5% on earnings, and that is what's currently priced in. • CSCO is up 4.5% this week. Historically, CSCO tends to reverse price movements around earnings, with the week before earnings showing opposite returns. • When short interest in CSCO rises in the week before earnings, the stock tends to sell off afterward. This week, short interest is up, and the shorts are usually correct. • In the past, when both the stock's return and short interest have risen, the stock has tended to sell off afterward.

• The stock has risen over the past month, while short interest has also increased. This suggests a potential reversal strategy.

• Short interest in CSCO is higher now as the stock is above its consensus price target for the first time. This indicates that analysts do not collectively see significant upside potential for the stock.

CSCO’s recent gains and rising short interest indicate a potential reversal. Historically, short interest spikes ahead of earnings often correlate with a post-earnings sell-off. Contact us for real-time positioning data through the S3 BLACK App.

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