Bank of America: Short Interest Surges 16% in Monthly Gain

BAC saw significant short interest growth in March. Short positions climbed 16.29% over the past month to 105.04 million shares as of the March 31 settlement date. That marks a notable increase from the 90.33 million shares reported in late February.

The banking giant's short interest represents just 1.49% of its free float. Days to cover sits at a modest 2.51, suggesting shorts could exit quickly if needed. Cost to borrow dropped sharply, falling 44% over the month to just 0.30% APR as of April 21. This indicates ample share availability for short sellers.

Recent volatility in borrowing costs is notable. CTB spiked to 0.69% on March 30 before retreating to current levels. Utilization ticked up to 1.01%, near the recent high of 1.03% but below the 52-week peak of 1.2%.

The stock closed at $53.48 on April 21, down 0.87% on the day but up 13.4% over the month. YTD performance remains slightly negative at -1.91%. Options traders show mild bearish lean with a put-call ratio of 1.20, above the 20-day mean of 1.18.

ORTEX Stock Scores paint a positive picture. Total score of 76.29 ranks in the top quartile, driven by strong growth (72.70) and quality (64.39) metrics. Momentum slipped to 43.00 but remains above neutral. Value scored 59.55. Analysts see 17% upside potential from current levels.

The bank's next earnings report is scheduled for May 4. Estimated Q1 revenue stands at $121 billion with EPS around $4.47. The company maintains a 2.25% forward dividend yield.

Short interest trends turned decidedly bearish in March after January's lows near 79 million shares. The move higher suggests growing skepticism despite solid fundamentals and analyst optimism. With borrowing costs low and ample availability, the current short position appears easily sustainable.

This is not financial advice. Short interest data can be volatile and subject to reporting delays.