WIT heads into its July 15 Q1 FY2027 earnings with the lending market considerably looser than it was just weeks ago — a meaningful shift from the extreme borrow squeeze that defined the setup in our last preview.
The unwind has continued since July 10. Availability has edged up to 25.6%, cost to borrow has fallen further to 33.7% — down from 349% at its late-June peak and still dropping at roughly 58% week-on-week. Short interest itself has declined another step, to 67.7 million shares, off nearly 24% from a month ago. The ORTEX short score has drifted down to 68.6, its lowest reading in the recent history shown, continuing the gradual retreat from 73.1 on June 29. The message from the lending market is consistent: the most aggressive phase of short positioning has passed, and what remains is a more orderly, if still elevated, bearish stance.
Options positioning has shifted notably into the print. The put/call ratio has dropped to 1.97 — well below its 20-day average of 2.55 and roughly 1.3 standard deviations below that mean. That is a meaningful reversal from the persistent defensive skew that characterised June. Traders are still running more puts than calls, but the degree of downside hedging has unwound materially. Combined with the stock's partial recovery — up 3.3% on the week to $1.90, though still down 13.6% over the past month — the picture is of a market that has repriced some fear ahead of the number.
The bear case rests on fundamentals that remain genuinely weak. A recent ORTEX note flagged that Q1 revenue guidance disappointed, with cautious client spending and extended deal closure timelines cited as headwinds. JP Morgan, the only analyst action recent enough to cite, lowered its price target to $1.70 from $2.20 in late June while maintaining an Underweight rating — a signal from a bellwether firm that the fundamental story has deteriorated further. The broader consensus remains negative. Past earnings reactions have also been punishing: the April 2026 print produced a 3.5% one-day drop and a 10.6% five-day decline, and the preceding quarter saw a 1.4% drop on day one followed by a 5.1% five-day slide. On the bull side, the ORTEX stock score reached a six-month high recently, driven by forward EPS revisions and solid value and quality metrics — including a P/E near 15x and healthy free cash flow generation — suggesting the stock is not expensive relative to its earnings power if demand stabilises.
The July 15 print will test whether the partial recovery in availability and the easing of options defensiveness reflect genuine confidence in an inflection, or simply the fading of a technically-driven squeeze ahead of a print that the fundamental backdrop still argues against.
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