POOL Short Interest Signals Mounting Pressure.

Pool Corp. manufactures and services swimming pools and is a $12 billion S&P 500 company. The short interest has increased from 7.7% to 10.33% this year.

Combined with a 50% crowded score, the stock is up 10%, pushing the squeeze score to 82.

S3’s Crowded Score is a proprietary multi-factor model that ranks the short crowdedness of a security based on its short interest, float, stock loan liquidity, and trading liquidity. POOL’s 50% score suggests moderate crowding among short sellers.

The short squeeze risk score now ranks third-highest in the S&P 500.

This is the first time POOL’s squeeze core has exceeded the critical 70 threshold.

S3’s Squeeze Risk Score is a proprietary model that ranks the potential for a short squeeze based on short interest, float, stock loan liquidity, trading liquidity, and mark-to-market profitability and loss. A score above 70 signals elevated squeeze potential — POOL’s 82 puts it firmly in that danger zone.

The stock’s recent 8% gain was driven by strong earnings, analyst upgrades, Berkshire Hathaway increasing its stake to nearly 4%, and enhanced buyback and dividend activity.

The short position has declined by 10% since July 15th, indicating a short squeeze underway, though squeeze risk remains elevated. This could be the start of a countertrend after the increase in shorting over the year-to-date.

Short sellers profited during the stock’s decline and reduced their positions to lock in gains. The blue line reflects cumulative short-side profits.

POOL is not hard to borrow, with minimal stock borrow rates

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