SpaceX’s price increase drives short-sellers into a tight spot

A space company SpaceX:n investors who had been fighting for the share’s decline are now rapidly closing their positions, as the company’s stock, which develops rockets, satellites and artificial intelligence, recovers from the post-listing decline.

According to the news service CNBC, the short sale follows by S3 Partners the data shows that the number of SpaceX shares sold short on Wednesday corresponded to approximately 11 percent of the company’s publicly traded shares. At the peak of last week, the share was 34 percent.

The decrease in the share of short-sold shares is due both to the closing of the positions of investors who were in favor of the bill, and to the considerable increase in the number of freely traded shares, when the insiders’ first sales ban ended.

SpaceX’s stock has been on a strong rise since the earnings release. Before the results announcement, the share price was below 110 dollars, and the results announcement was initially met with skepticism.

On Wednesday, August 12, the company’s stock was up almost 10 percent at $146.10. The price was again above the company’s IPO price of $135, but below the closing price of $160.95 on the IPO day.

The increase in the value of the stock can be affected by buybacks by investors who sold short, as the increase in the stock price reduces the return on their positions unless they close them. At its highest, SpaceX’s stock rose well above $200 a couple of days after the listing.