Pasithea Therapeutics Corp. heads into mid-May with its most notable story in the lending market: short sellers have been quietly backing away, and the cost to borrow is following them down.
Short interest has fallen sharply. The estimated short position dropped 34% over the past week to roughly 243,000 shares — back near where it stood in mid-April, after peaking above 380,000 shares in early April. At 2.4% of the free float, the level is modest for a micro-cap biotech, but the pace of the retreat is the standout. Borrow costs have declined steadily alongside the position reduction, falling to 10.7% APR from over 23% in mid-April — a drop of more than 50% in a month. Borrow availability is generous at 390% of current short interest, meaning the lending pool is far from stressed. The ORTEX short score has eased from 53 on May 8 to 45.6 this week, and the utilization rank of 35 places the stock well below the tightest end of the borrow market.
The broader data picture is thin for a stock of this size. No analyst coverage is visible. The enterprise value is negative — around -$39 million — reflecting a cash position that comfortably exceeds the market cap of roughly $19.5 million. That negative EV is the key valuation fact for investors here: the stock is trading at a discount to its own net cash. The one meaningful factor signal is an EPS surprise rank in the 96th percentile, consistent with a company that has repeatedly beaten low expectations. RSI14 is neutral at 51, and there are no near-term catalyst signals from the screening data.
The insider picture is stale — the most recent cluster of buys dates to November 2025, when the CEO, CFO, Executive Chairman and two directors collectively purchased around 260,000 shares at $0.75. That price is close to the current level of $0.78, which means those insiders are roughly flat on the trade. The absence of any more recent activity means that cluster cannot be read as fresh conviction. Ownership is concentrated: Coastlands Capital holds nearly 15% of shares outstanding, Opaleye Management around 10%, with Janus Henderson, Adage Capital, Vivo Capital and Squadron Capital each near 8%.
The last two earnings prints produced small moves — a 1.2% decline on April 14 and a 0.2% gain on March 30. One notable outlier is a 254% five-day move following the November 2025 print, though the circumstances behind that spike are not evident from the available data and should not be read as a baseline for future reactions.
What to watch next is the combination of short interest direction and cash burn: if the position continues unwinding while the stock holds near its net-cash value, that gap between market price and balance-sheet reality becomes the operative tension for anyone sizing exposure.
See the live data behind this article on ORTEX.
Open KTTA on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
