KBW cuts BOH to Market Perform as shorts reach a one-year high

Bank of Hawaii Corporation reported earnings on Monday. By Tuesday morning, its most closely watched bank analyst had downgraded the stock, and short sellers had pushed their position to the highest level in at least a year.

Keefe, Bruyette & Woods analyst Kelly Motta cut BOH from Outperform to Market Perform and trimmed her price target from $85 to $78, citing doubts about the sustainability of the bank's margin recovery against a backdrop of weak loan growth and slowing deposits. DA Davidson's Jeff Rulis held his Neutral rating and $75 target. The consensus sits at Hold, with a mean target of $79.67.

Short interest climbs after the print

Short interest now stands at 11.3% of free float, up 12.1% in a week and 27.5% over the past month. That is a fresh one-year high by the ORTEX estimate, extending the build that was already noted before Monday's earnings release. The week-on-week move is roughly 2.5 standard deviations above BOH's typical weekly change over the past year.

Despite the rising position, the borrow market itself remains relaxed. Availability sits at 849%, meaning there are roughly eight shares available to lend for every one already borrowed. That compares with a 52-week low of 446%. Borrow costs are 0.40%, down around 20% over the past month, so the short build is not being driven by a scramble for stock to borrow.

The options market is sending the same directional message. The put/call ratio reached 3.54 on October 26, against a 20-day average of 3.06 and within touching distance of the 52-week peak of 3.64 set earlier in the week. The PCR has more than tripled from the 0.93 reading seen in late September.

Company data cuts the other way

ORTEX alt data from FDIC call reports shows total deposits at $20.97 billion for Q2 2026, the largest Q2 reading on record going back to 2024. Net loans and leases have risen for four consecutive quarters. Buyback spend in Q2 was the highest in six years. These are verified facts from regulatory filings, not forecasts, and they sit in contrast to the bearish thesis on loan growth and deposit weakness that drove the KBW downgrade.

The FDIC call reports dataset has not yet been in service long enough to test as a leading indicator, so no directional inference can be drawn from it on the next earnings print, due January 25, 2027.

Retail attention spikes

Wikipedia page views and ORTEX stock page traffic for BOH are running 3.66 standard deviations above their combined 90-day average, as of October 27. That is an attention reading, not a revenue signal, but it confirms that today's analyst action and short build have drawn retail eyes to a name that rarely commands them.

Data summary

• SI % of free float: 11.3%, up 12.1% on the week, up 27.5% on the month
• KBW downgrade: Outperform to Market Perform, target cut to $78 from $85
• Consensus: Hold, mean target $79.67
• Put/call ratio: 3.54, against 52-week peak of 3.64
• Borrow availability: 849%, cost to borrow 0.40%
• FDIC Q2 2026 deposits: $20.97bn, largest Q2 on record
• Net loans and leases: risen for four consecutive quarters
• Retail attention z-score: 3.66 vs 90-day average