Trustmark Short Interest Climbs to a Year-High Before Earnings

Short sellers have built their largest position in TRMK in at least a year, with shares short rising nearly 30% over the past month to 6.4% of the free float as of October 26.

The buildup has accelerated sharply in the final stretch before today's earnings release. Short interest added 9% in a single session on October 26 and is up 10.9% on the week, with the absolute share count climbing from roughly 3.35 million in late September to 3.85 million. That pace of accumulation stands out for a mid-cap regional bank that had been trading in a relatively tight range. The stock closed at $46.12 on Tuesday, up 1.6% on the week, a gain that lags the median 5.1% advance posted by its closest peers. UBSI, FULT, and RNST each added between 5% and 7% over the same period, leaving TRMK as one of the weaker performers in the cohort despite flat-to-positive price action.

Borrow costs have risen alongside the short interest build, up 48% over the past week to 0.54%, though that remains a low absolute level. Availability is ample at 2,871% of short interest, meaning there is no constraint on new shorts entering the trade. The cost move reflects growing demand for borrows rather than any tightening in supply.

The analyst community has held a cautious stance on TRMK for some time. Targets have drifted higher through 2026, with Keefe, Bruyette & Woods raising to $50 in September and prior-quarter moves from Piper Sandler and DA Davidson also nudging numbers up, but all three firms maintain neutral-equivalent ratings. The mean target of $50.50 implies roughly 9.5% upside from Tuesday's close, yet no firm has moved to an outright buy. KBW had previously carried an Outperform but stepped back to Market Perform in April. The FDIC call report data published by the Federal Deposit Insurance Corporation shows total assets and net loans and leases have each risen for six consecutive quarters, the kind of balance-sheet momentum that underpins the bull case around NIM stability and loan growth. Against that, bears point to mortgage production down 4.6% last quarter, non-performing assets at $104 million, and ongoing exposure to competitive loan pricing.

The earnings print will test whether a month of steady short-interest accumulation, against a backdrop of rising targets and improving balance-sheet trends, reflects a genuine read on credit or margin risk, or simply the market catching up to a stock that has lagged its peers through a strong week for regional banks.