Short sellers have built a formidable position in KSCP ahead of its Monday earnings print — and the lending market confirms they aren't going anywhere.
Nearly 24% of the free float is short, making Knightscope one of the most heavily shorted names in the market. That figure has climbed 44% over the past month, a sustained and deliberate build rather than a one-session spike. Availability is extremely tight: with borrow utilization running at 95%, there is very little headroom left in the lending pool. Cost to borrow is running around 10%, elevated for a micro-cap but not yet at squeeze-forcing levels. The ORTEX short score of 78.2 ranks Knightscope in the bottom 2nd percentile of the universe for short positioning — a signal of exceptional bearish pressure. Days to cover sit at nearly 11, meaning it would take almost two weeks of full daily trading volume to unwind the entire short position.
The bull case rests on the company's trajectory rather than its current numbers. Knightscope has been pursuing double-digit revenue growth, positive EBITDA momentum, and a recently completed acquisition of Event Risk LLC — a move that expands its licensed services footprint. The covering analysts at Ascendiant Capital and HC Wainwright both maintain Buy ratings, with targets ranging from $12 to $26, implying substantial upside from the current $2.95 price. The most recent action, Ascendiant lifting its target to $26 in mid-April, signals continued conviction from the most bullish voice on the stock. That said, the mean target across all analysts works out to around $15 — still a large multiple of today's price, reflecting genuine disagreement about the growth path. Bear-side concerns centre on a small cash position, a material debt load, and recurring profitability challenges that have kept the stock under sustained pressure.
The historical record shows these prints can move sharply. The March 31 release produced a 14% single-day gain and held a 10% five-day gain. Before that, a late-March event produced a 39% single-day collapse. The RSI has drifted down to 39, putting the stock in modestly oversold territory ahead of the report, while the stock is down 13% over the past month and off 21% year-to-date.
The Monday print is therefore a test of whether Knightscope's contracted revenue and EBITDA narrative can outweigh the deep short position and a balance sheet that bears continue to question.
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