FEMSA Reports Today With Short Interest at a Year High

FMX, the Mexican beverage and retail conglomerate that operates Oxxo convenience stores and holds the Coca-Cola bottling franchise across Latin America, reports third-quarter results this morning with short sellers adding to positions at the fastest pace in at least a year.

Short interest jumped 23% in a single session on October 26, reaching roughly 2.2 million shares. That compares with a range that held between 1.7 million and 1.9 million shares for most of September and October. The official FINRA settlement-date figure, struck at mid-month, put the position at 2.2 million shares with a days-to-cover reading just above four, and the daily estimate has now matched that level after a week of accumulation. The move is notable in its speed rather than its scale: even at current levels, the position is small relative to the float. Borrowing remains nearly free at 0.23%, and availability is extremely loose at over 7,000%, meaning the lending pool is far from under pressure. Options positioning leans the same way: the put/call ratio of 0.04 is well below its 20-day average of 0.07, indicating call volume dominates despite the short interest build.

The analyst picture is broadly constructive but divided on degree. JP Morgan raised its target to $151 on October 16, maintaining an Overweight view, while UBS followed on October 23 with a more cautious lift to $134, holding at Neutral. Bank of America sits at Buy with a $150 target. The consensus mean is $135, a fraction above Tuesday's close of $124.26, which itself reflects a 4% decline over the past week. The core debate among analysts is whether the Oxxo-led proximity retail segment can show margin recovery in this quarter. Optimists see a re-rating candidate once the retail drag eases. Sceptics, including UBS, see limited upside beyond current levels until structural margin pressure in that division visibly turns.

The last earnings report, in late July, saw the stock fall more than 8% on the day, recovering about half that loss over the following week. The print today will test whether the retail margin narrative has shifted enough to change that pattern, or whether the market again concludes the recovery is slower than the constructive analyst cases assume.