Short sellers keep piling into VELO. The borrow market is showing the strain.
Short interest in Velo3D has climbed to 22.3% of free float — up 21.5% in a single week and 44% over the past month. The stock has fallen 44% in a week and 34% over the past month. Needham initiated coverage with a Buy rating and a $33 target on June 25. The stock now trades at $16.64.
Availability has swung violently in recent weeks. On June 19, it hit 0.33% — effectively zero, meaning every share in the lending pool was out on loan. It has since loosened to 20.6%, still firmly in "very tight" territory. For context, availability was above 100% as recently as late May.
Cost to borrow reflects the same stress. It stood at roughly 3.4% in mid-June. By June 26, it had risen to 7.3% — an 80% jump in one week. That is the highest level in the 30-day window.
The ORTEX short score sits at 69.4. The short score rank stands at the 3rd percentile — among the most heavily shorted names in the market relative to peers.
Needham's initiation at Buy with a $33 target lands against a stock trading at $16.64. That implies roughly 98% upside to the analyst's target. Lake Street also maintains Buy, raising its target to $20 in May after the company's strong earnings move — the stock jumped 57% the day after its June 10 earnings report.
The options market is not aligned with the bears either. The put/call ratio sits at 0.39, below its 20-day average of 0.42. Call volume is dominating options flow.
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