LEVI reports Q2 2026 earnings on July 8. The short-covering that began last week has continued — but the borrow market is now sending a contradictory signal.
Short interest has fallen another 20% this week to 6.9% of free float. That continues the retreat flagged in our June 30 earnings preview. Bears have unwound roughly 2.5 million shares since late May.
But cost to borrow has exploded in the opposite direction. CTB jumped from 0.42% to 1.90% overnight — a 327% weekly rise. That is a sharp anomaly given how uncrowded the lending market otherwise looks.
Availability sits at 845%. Roughly eight shares remain available for every one currently borrowed. The borrow pool is not tight. Yet whoever is still short is paying dramatically more to maintain that position.
The options market has not shifted with the short covering. The put/call ratio stands at 1.32 — 2.0 standard deviations above the 20-day mean. That reading has been elevated all week. It matches the 2.3 sigma print from June 29.
Put demand is sticky. Short sellers may be retreating, but options traders are not easing off the downside hedging.
Citigroup's Paul Lejuez raised his price target from $23 to $25 on June 29, maintaining a Neutral rating. The stock closed at $24.83 — already within $0.17 of that revised target.
UBS and Needham carry Buy ratings with targets of $34 and $28 respectively.
On the holder side, founding family members remain the dominant shareholders. Robert D. Haas sold roughly $16.7m worth of stock in mid-June. The Peter E. Haas Jr. Family Fund trimmed 150,000 shares. Margaret Haas sold a smaller parcel. These disposals came at prices around $24 — close to where the stock trades now.
The CTB spike is the sharpest signal heading into earnings. It suggests at least some market participants are scrambling to maintain or establish short positions even as the broader bear cohort retreats. With the put/call ratio still elevated and the Citi price target already essentially met, the options market implies investors see meaningful two-way risk in the July 8 print.
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