Super Micro Computer (IT / Tech Hardware & Equipment, $20B market cap, +6% YTD) short interest in terms shares, % and notional value all stand near the lower bound of its 52-week range currently. Shorts have steadily reduced their positioning since peaking at 117M shares, 23% float, $6B notional at the end of February. Interestingly, Days-to-Cover (DTC) has steadily been on the rise, climbing from less than 1 day to almost 3 days, despite the short covering. This implies lower trading volumes, which makes the short base more sticky and slower to clear. Note the modest re-acceleration in short demand since the start of November.

52-week SMCI SI (Shares) and DTC

SMCI short interest at 15.3% of Float places it among the highest conviction shorts in the SPX. The S3 Long-Short Ratio tells a complementary story, with active long and short notional exposures having moved in near lockstep for most of the year, keeping the stock as a balanced yet highly active battleground. The L/S ratio falling from 1.3 to 0.97 denotes a slight skew to the short side, reinforcing the idea that shorts have remained committed. SMCI continues to screen as one of the most hotly contested single name positioning stories.

Top Ten SPX SI % Float

SMCI Active Long-Short Notional Ratio

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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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