FLEX LNG heads into late August with one of the most striking divergences in its recent history: options traders have turned sharply bullish at the same time that short sellers are adding to positions and borrowing costs are climbing.
The options story is the loudest signal this week. Demand for calls has overwhelmed puts to a degree that almost never happens with this name. The put/call ratio collapsed to 0.24 — nearly three standard deviations below its 20-day average of 0.76, and right at the 52-week floor. For most of the past six months, the ratio sat in a tight band between 0.80 and 0.90. The sudden rotation toward calls in the last two sessions is a sharp break from that pattern, and it coincides almost exactly with the stock's Q2 earnings release on August 19, which produced a 3.1% day-one gain. Whether the call activity reflects fresh bullish conviction or residual post-earnings positioning is the open question — but the signal is unambiguous.
Short positioning tells a more cautious counter-story. Shares short have risen roughly 4.6% over the past week to around 4.66 million, up 13.7% from a month ago. That steady accumulation has run alongside a spike in borrowing costs: at 2.56%, the cost to borrow is 26% higher than a week ago and 21% above the 30-day average, hitting its highest level since early August. Availability has tightened to roughly 197% — still in a normal range, but down from above 250% in mid-August, meaning the borrow pool is being used more actively than it was just two weeks ago. This isn't a crowded short by any measure, but the direction of travel — more shares short, more expensive to borrow, availability narrowing — runs directly against what the options market is pricing.
The Street sits closer to the bears than the bulls, though the analyst data here is dated. The only visible coverage is Jefferies, which has held a Hold and a $23 target for over a year — a target now sitting roughly 28% below the current price of $31.93. That gap warrants a caveat: the target may not reflect recent developments including the earnings beat, the year-to-date rally of nearly 28%, or a trading environment where the stock has re-rated. The ORTEX short score is elevated at 76.4, placing the stock in the top decile for short-side risk signals, while the analyst recommendation divergence factor scores in the 90th percentile — reflecting how far the stock has moved above where analysts are anchored. On valuation, the PE has edged to 14.3x and EV/EBITDA to 11.5x, both modest expansions over the past 30 days as the price has drifted higher.
The ownership picture has a notable wrinkle this week. CEO Halfdan Marius Foss sold 27,575 shares on August 20 at $32.48, netting just under $896,000. The sale came the day after earnings and at a price close to a multi-year high. It follows a well-established pattern: the prior CEO and CFO both sold in September and April 2024, also at elevated prices. John Fredriksen's 42.7% controlling stake remains unchanged, providing stability at the top of the register, while BlackRock added 182,628 shares through July — a meaningful institutional vote of confidence against the grain of selling by management.
The next earnings event is scheduled for November 27. Between now and then, the tension worth watching is whether the post-earnings call-buying enthusiasm holds up or fades back into the 0.80 PCR baseline — and whether the gradual short build accelerates now that borrow costs have stepped up.
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