BNL Bearish Positioning Holds a Week After Earnings

Broadstone Net Lease short sellers have not covered. Short interest stands at 10.9% of the free float as of November 2, up 22.6% over the past week and sitting at the same elevated level that built ahead of the October 29 earnings print.

Put buyers follow the shorts in

The options market is telling the same story. The put/call ratio is 0.85 as of November 2, within a whisker of the 52-week high of 0.86 set on October 29. That compares to a 20-day mean of 0.27 and places the reading 2.2 standard deviations above average. Before late October, BNL's PCR had been below 0.15 for most of the year. The sustained elevation after earnings, rather than a snap-back, is the notable detail.

Analysts cut targets, keep ratings

Goldman Sachs lowered its price target from $26 to $23 on November 2, maintaining a Buy. Cantor Fitzgerald trimmed from $24 to $21 on October 30, keeping Overweight. The consensus target is $22.50. The stock closed at $17.59 on November 2, up 2.9% on the day and 2.1% over the week. Peers EPRT and WPC gained 0.8% and 0.6% respectively over the same week, so BNL's recovery is modestly ahead of the sector but has not erased the gap to analyst targets. BlackRock added over 9 million shares in the period to September 30, bringing its stake to 17.95% of shares, the largest single holder by some distance.

Borrow costs and availability

Cost to borrow is 0.46%, up 7.7% over the week but well below the 1.2% peak seen at the start of October. Availability remains loose at 607%, meaning there are roughly six shares available to borrow for every one already lent out. The lending market is not signalling any squeeze pressure: borrow is cheap and plentiful.

Data summary

• Short interest: 10.9% of free float, up 22.6% over one week
• Put/call ratio: 0.85, near the 52-week high of 0.86; 2.2 standard deviations above 20-day mean
• Cost to borrow: 0.46%, up 7.7% over one week
• Availability: 607%, ample supply in the lending pool
• Goldman Sachs price target cut to $23 (from $26); Cantor Fitzgerald to $21 (from $24); both maintain positive ratings
• Consensus target: $22.50; stock at $17.59
• BlackRock stake: 17.95% as of September 30, up from prior reported level