TLN shorts are unwinding fast. Short interest at Talen Energy has swung sharply — from a 21% single-day surge on May 19 back down 11% the following session to 5.25% of float. The borrow market tells the same story: availability sits at a vast 1,625%, and cost to borrow has collapsed 50% in a week to just 0.23% APR. Yet options traders remain stubbornly bullish despite a stock down 16% over the past week.
The short interest whipsaw is striking. On May 14, shorts added aggressively — daily shares shorted surged 5% even as the stock slid. Then on May 19, positions jumped 21% in a single session to 5.9% of float. The very next day, those bets started unwinding.
The borrow market corroborates the retreat. Cost to borrow has fallen from ~0.49% APR in late April to just 0.23% today. Availability at 1,625% is well into loose territory — roughly 16 shares remain available to borrow for every one already lent out. Bears are not fighting over scarce supply.
The put/call ratio tells the opposite story. At 0.76, the PCR sits near its 52-week high of 0.79 hit on May 18. That reading lands 1.3 standard deviations above the 20-day mean. A low PCR signals call-heavy positioning — options participants are buying upside, not hedging downside.
The divergence is notable. Short sellers piled in as the stock fell 16% over the week. Options traders responded by buying calls. Both camps are placing bets. The data does not resolve who is right — but it does confirm genuine disagreement at current levels.
Street conviction has not wavered. Barclays raised its price target to $411 on May 19, maintaining Overweight. The consensus mean target stands at $475, implying roughly 51% upside from the current $314.57 close. Wells Fargo reiterated Overweight with a $477 target earlier this month.
EPS momentum is a key reason analysts are holding firm. The 30-day EPS momentum factor ranks in the 97th percentile. Forward EPS year-over-year growth estimates also rank 97th percentile. The earnings print on May 5 delivered a 6.6% single-day jump — though the stock gave back those gains and more over the following five days.
Two notable active managers added meaningfully in Q1. Lone Pine Capital built its position by 525,431 shares. Sachem Head Capital Management added 547,500 shares. Both are long-oriented fundamental managers. Their buying came as the stock was trading near these levels.
Key data (as of May 19–20, 2026):
See the live data behind this article on ORTEX.
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