· Generac (GNRC), a manufacturer of home backup generators, surged 20% following its earnings report, with an additional 5% gain the next day. The stock is now trading above updated price targets, which were revised upward after an analyst upgrade.

· Despite a notable short position, GNRC is not considered crowded, earning a moderate crowding score. However, its squeeze score has reached a critical level of 70, driven primarily by recent price momentum.

· The squeeze score intuitively reflects two key components:

The level of crowding in short interest

The mark-to-market losses sustained by short sellers have worsened in line with the stock’s 25% rally in recent sessions.

While short interest remains relatively modest at 6% of float, the sharp increase in the share price has resulted in significant unrealized losses for short positions. This is a key contributor to the spike in the squeeze score.

· Notably, the cumulative P&L for short positions recently turned negative, followed by a sharp deterioration. This shift is the primary driver behind the surge in squeeze risk.

· These dynamics only began to unfold yesterday, and as of now, no data is available on whether short positions have begun to cover. Upcoming short interest updates will provide crucial insight into positioning and potential pressure in the days ahead.

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The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.

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