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Citigroup upgraded BXDC to Buy this morning, the first rating lift since the stock launched coverage in June. The call arrives as short sellers cut positions sharply and options traders sit as bullish as they have been in months.
Michael Rollins at Citigroup moved his rating from Neutral to Buy today. He cut his price target at the same time, to $20 from $23. The stock closed Friday at $16.66, down 17.9% over the past month. At $20, the new target still implies a material recovery from current levels. The consensus now stands at Hold, with four Buy ratings against four Holds, and a mean target of $23.55. That average sits well above where the stock trades, reflecting a Street that sees value but has not yet coalesced around conviction.
Blackstone Digital Infrastructure Trust's most recent earnings, reported in early August, saw the stock fall 3.3% on the day and a further 3.1% over the following week. No next earnings date is confirmed.
Short interest fell 24% in a week, dropping to 4.73 million shares on October 9 from 6.24 million on October 2. That marks a sharp reversal from a build that roughly doubled positions over the prior month. Despite the recent reduction, short interest is still up 138% over 30 days, so some of the recent build remains in place.
Borrowing costs are low, at 0.50%. Availability sits at 461.6%, meaning roughly four and a half shares are available to lend for every one currently borrowed. The lending market is loose, presenting no constraint to further shorting if sentiment turns.
The ORTEX short score has fallen to 45.5 from 56.3 ten days ago, reflecting the easing of short-side pressure.
The put/call ratio hit 0.041 on October 9, 2.2 standard deviations below its 20-day mean of 0.051. Bearish options positioning is near its lowest point on record for this stock. The 52-week high PCR was 3.18, reached in early September, just before the index addition trade went through. The shift from that extreme to the current near-zero reading illustrates how quickly sentiment has rotated.
Stephen Schwarzman filed a Schedule 13D on BXDC in May, disclosing a 9.4% stake as last reported. A 13D signals active rather than passive intent. Cohen & Steers holds 16.7% as last disclosed via a 13G. Both filings are event-driven disclosures around the 5% threshold; positions are as last reported and may have changed since.
BXDC joined the Russell 2000 in September following the index's quarterly review, with ORTEX estimating $219 million of index-tracker buying on the effective date of September 21. That mechanical flow has now cleared.
What to watch: whether the Citigroup upgrade, coming in below the prior target, draws further analyst revisions, and whether the short position continues unwinding or stabilises at current levels.
See the live data behind this article on ORTEX.
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