HUB Cyber Security has lost nearly 90% of its value in a single month — a collapse that puts the Israeli cybersecurity firm in genuinely precarious territory heading into a May 8 earnings call.
The catalyst is not hard to find. On April 16, HUBC announced a 1-for-50 reverse stock split, effective April 20. Far from stabilising the share price, the restructuring has preceded a brutal sell-off. The stock closed Friday at $0.54, down 34% on the day and 70% on the week. A month ago the post-split adjusted price sat far higher. What was pitched as a compliance-driven reset has, in the market's verdict, accelerated the deterioration.
Short positioning has surged in response, though the picture is volatile rather than structurally crowded. Short interest jumped 59% in a single session on April 30, reaching roughly 6% of free float. That follows a week-on-week gain of 50%. Yet the history here is instructive: shorts briefly reached far higher levels in mid-April — around the time of the reverse split — before collapsing back to sub-1% of float by April 20, only to rebuild sharply again. The current level, 6% of float, is elevated for this name but not extreme on an absolute basis. What is elevated is the cost to borrow. At 80.8% annualised, borrowing HUBC shares is expensive — though it has actually eased from the peak of 210% recorded on March 27. Availability has tightened meaningfully over this period, reflecting genuine demand for short exposure even as the borrow cost has moderated from its worst levels. The ORTEX short score sits at 78.7, a reading consistent with persistent, active short pressure rather than a one-day spike.
The structural story is weak by almost every measure. The ORTEX short score rank places HUBC in the second percentile of its universe — meaning nearly every comparable stock carries a lower short score. Valuation data is stale (the most recent EV figure dates to December 2024) and cannot be reliably applied against the current market cap, which is no longer available as a clean number given the stock's level. Analyst coverage appears absent from the data, which is consistent with a sub-dollar micro-cap that institutional desks have largely stopped following. The sector score of 50 — squarely median — reflects neither a tailwind nor a structural edge in the IT services space.
Ownership data flags one further concern. The largest reported holders — Shlomo Bibas and Ilan Flato, each with 3.5% of shares as of March 31 — added their full reported positions in the most recent quarter. Whether these are insider-related accumulations or simply late-reported filings is unclear, but the concentration at these levels means any forced selling could move the stock materially given thin liquidity.
Earnings history adds to the cautious backdrop. The last four releases produced three negative 1-day reactions averaging roughly -4.4%, and each was followed by a weaker 5-day window — the worst saw the stock fall 22.6% in the five sessions after a December 2025 print. The May 8 event is therefore less about a specific earnings beat-or-miss and more about whether management can credibly address the post-split trading collapse and sketch a path to Nasdaq compliance.
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