Why this matters: Short sellers are abandoning MNDY positions at an extraordinary pace. SI dropped 32% in a single week to 9.1% of free float — the lowest level in months. Options traders are simultaneously rotating from bearish to neutral, and the lending market has loosened dramatically. Yet analysts are split on what comes next.
Short interest hit 9.1% of float on August 11, down from roughly 13.4% just a week prior. That's a drop of over 2.2 million shares in five trading days. The speed is the story. SI had been anchored stubbornly above 6.9 million shares for more than six weeks, then collapsed almost overnight.
The lending market confirms the exit. Availability has widened to 1,079% — meaning roughly ten borrowable shares exist for every one currently lent out. A week ago that figure was tighter. Cost to borrow has fallen to 0.35%, down 38% week-on-week. Bears covering positions no longer face meaningful friction. The borrow market is loose.
The put-call ratio stood at 1.05 on August 11. That is below the 20-day average of 1.21 by two standard deviations — a z-score of -2.04. The PCR had been anchored above 1.24 throughout most of July and early August. The shift in a single week is abrupt. Options positioning has rotated away from bearish hedging toward something closer to neutral.
Earnings on August 10 triggered a 6.1% one-day decline. The PCR move suggests that hedges placed ahead of that print are now being unwound.
Monday's Q2 print generated a flurry of analyst revisions — five firms moved in the 24 hours after results. The directions diverged sharply.
Downgrades: Wolfe Research cut to Peer Perform from Outperform. Cantor Fitzgerald dropped to Neutral from Overweight, cutting its target from $112 to $90.
Target raises and holds: UBS raised its target from $85 to $95, keeping Neutral. TD Cowen reiterated Buy at $110. Wells Fargo maintained Overweight but trimmed from $130 to $120. BTIG held Buy at $105.
The consensus target sits at $109, roughly 25% above Tuesday's close of $87.47. Citigroup's $132 Buy-rated target represents the most optimistic case. The bear case at $90 (Cantor, Piper Sandler) implies the stock is roughly fairly valued here.
Wolfe's downgrade is the most significant action. Moving to Peer Perform signals conviction in neither direction — unusual for a name where most of the Street holds a directional view.
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