Broadway Financial Corporation heads into its April 30 results event having already shown its hand — a sharp swing back to profitability — leaving the question of how the market digests the detail.
The headline numbers landed after the close on April 28. Q1 EPS came in at $0.09, reversing a $(0.39) loss from the year-ago quarter. Revenue climbed to $10.15M from $8.33M a year earlier — a 22% improvement that makes this the clearest evidence yet of an operational recovery at the community development bank. The stock had already been drifting higher ahead of the announcement, up 8.3% over the past month and 1.2% on the week to close at $7.86 on April 28.
Short sellers have not taken the turnaround at face value. Short interest has climbed 25% over the past month, reaching roughly 0.27% of the free float — and jumped 9% in the last week alone. Days to cover now run at 8.2 sessions per FINRA data, reflecting thin daily trading volume relative to the size of the short position. That said, the absolute level of short interest remains negligible — fewer than 15,300 shares short on a stock with a $72M market cap — and the borrow market is extremely loose. Availability is abundant, with cost to borrow running at just 0.52% annualised. The lending pool saw brief spikes in mid-April (touching 6.8% on April 13 and 3.3% on April 15) before quickly normalising, suggesting those were transient settlement-related events rather than a structural tightening. The overall short score of 38 ranks in only the 27th percentile of the universe — the shorts are building but this is not a crowded or aggressive short position.
The ownership structure underscores the community-focused nature of the bank. City First Enterprises holds 9.3% of shares, City First Bank a further 6.3% — both affiliates of the merged CDFI banking group. M3F, Inc. added nearly 49,000 shares through December 2025, building to a 4.9% stake. CEO Brian Argrett reported 29,443 new shares as of early March, taking his holding to 125,752 shares. Those insider additions are now more than 50 days old and predate the Q1 results, but they reinforce the picture of management conviction at current price levels. The most recent insider activity on record — a director's steady stream of 1,000-share daily sales through October 2025 at prices between $7.20 and $7.70 — contrasts slightly with the CEO's accumulation, though the scale of those sales was small.
Past earnings prints have landed with a consistent downward bias. The three prior events each produced negative one-day returns, ranging from flat to -4.3%, with five-day moves mostly flat to negative as well. The April 30 event will test whether the return to profitability and the revenue acceleration are enough to break that pattern — or whether the illiquid, thinly covered float means any selling pressure amplifies the move disproportionately.
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