Three separate signals converged on IDN this week. They tell a coherent story — and earnings are the thread running through all of them.
Short interest on Intellicheck fell 30% in a single week. It now sits at 1.18% of free float — a level too low to be alarming on its own. But the speed of the retreat matters. Positions have been unwinding steadily since late April, when short interest peaked near 480,000 shares. It has since been cut roughly in half.
The lending market reflects the exit. Availability is ample — the borrow pool is well-supplied, meaning those who want to short can still do so cheaply. Cost to borrow rose 161% over the past week to 1.66%, but that figure is still low in absolute terms. The prior week's rate was just 0.64%. The jump reflects a modest tightening as some borrowers returned shares. It is not a sign of a borrow squeeze.
The more interesting signal is in the options market. The put/call ratio hit 0.39 on May 12 — the highest reading in two weeks. That puts it 2.36 standard deviations above its 20-day mean of 0.34. The 52-week range for the ratio runs from 0.013 to 0.565, so the current level is elevated but not extreme. Still, the sudden shift above the historical mean stands out given the broader short-covering backdrop.
Unusual options activity ahead of an earnings event is common. IDN had an earnings-related event on May 12-13. The stock fell nearly 5% after its May 7 report. That recent move may be shaping how options traders are positioning now.
One data point adds a layer of caution. CEO Bryan Lewis sold 10,000 shares on four separate occasions between April 6 and April 27 — $320,000 worth in total over 90 days. Each sale was at a slightly different price, ranging from $7.53 to $8.51. The regularity suggests a structured plan rather than a directional call. Still, it is a visible supply overhang from the top of the company.
Analysts remain constructive. DA Davidson maintained its Buy rating and $7.50 target in March. HC Wainwright raised its target to $8.50 in December. Both targets sit above the current $7.22 close. Aigh Capital Management, a top institutional holder, added 303,815 shares as of March 31.
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