Rain Enhancement Technologies had a week defined by a sharp reversal in short positioning — arriving precisely as the company delivered its first-quarter numbers.
Short interest collapsed in the week to May 14. The estimated SI % of free float is now just 0.04% — a negligible level by any measure — after shorts pulled back roughly 62% on the week and 45% versus a month ago. The context matters: in early April, short positions were roughly three times larger in share terms. That steady unwind through April and the first half of May has continued this week at a much faster pace, coinciding with the Q1 earnings announcement on May 15, which showed a loss of $0.24 per share on sales of roughly $10,500.
Borrow conditions tell a more nuanced story. Cost to borrow remains elevated at 52.4% annually, well above most small-cap benchmarks, even as it has eased from the March peak of around 109%. The lending market has been volatile all month — CTB swung from 27% to 62% between May 8 and May 11 alone. That kind of volatility typically reflects a thin borrow pool responding sharply to changes in demand. Availability is loose enough that new short positions can be established, but the high borrowing cost means carrying them is expensive.
The ORTEX short score of 51.5 sits roughly at the midpoint of the 0-100 scale, having retreated from 55.3 on May 5. That drift lower maps almost exactly onto the shrinking short position over the same period. Neither the score nor the current SI level flags any meaningful squeeze risk — but the elevated cost to borrow is a reminder that this is not a freely available borrow.
The ownership picture is concentrated. The top two holders — Paul Dacier and Harry You — together control roughly 41% of shares, and Coliseum Acquisition Sponsor LLC holds another 12%. Institutional coverage beyond this core group is thin; the ORTEX holder count sits at just 21 entities. The most recent institutional move of note was Meteora Capital adding around 294,000 shares as of January 2026. Insider trade data is stale (last recorded September 2025), so no fresh signal is available there. The stock trades at around $1.74, capped by a market value of just $14 million, which limits the universe of institutional participants who can be involved.
The earnings history shows mixed post-print reactions: the Q4 print on April 15 produced a modest 2.2% gain on the day and a stronger 13.9% gain over the following five sessions, while the May 1 announcement was nearly flat on day one before the stock dropped 39% over the next five days. With the Q1 results now out and no next scheduled event visible, the stock's near-term trajectory will depend on how the market digests a further quarterly loss and whether the short-covering trend runs out of shares to return.
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