Calavo Growers heads into the final week of April with a notable split in its positioning data: short interest has climbed sharply over the past month, yet options traders have become markedly less bearish than at any point in recent memory.
Short sellers have been active. Short interest as a percentage of the free float has risen from around 7.4% in mid-March to 9.2% now — a climb of roughly 25% in six weeks. The intra-week peak was 10.5% on April 23, the highest reading in the observed window, before easing slightly to close the week at 9.2%. On a one-month basis, the estimated short share count is up 22%. The pace has been gradual rather than a single-day event, suggesting systematic positioning rather than a reactive trade.
The lending market, however, is not signalling any meaningful squeeze pressure. Availability is ample at over 400% of current short interest, meaning for every share already borrowed, roughly four more remain available in the lending pool. Cost to borrow has actually eased over the past month, falling around 30% from early April peaks to a current 0.51%. Borrow conditions are loose. That matters: a rising short position built against a tight borrow market is a different setup to one where shorts can add freely and cheaply, which is the current picture.
Options positioning has shifted sharply in the bulls' favour. The put/call ratio has collapsed from its 52-week high of 12.3 — recorded as recently as mid-April — to 6.4 now, almost exactly two standard deviations below its 20-day mean of 10.9. That is an extreme swing. For most of March and the first half of April, the put/call skew was pinned at historically high defensive levels. The reversal over the past two weeks is abrupt and pronounced. The stock's ORTEX short score has moved in the opposite direction, climbing from the mid-40s in mid-April to 58.2 today, its highest reading in the current window.
On the Street, the analyst picture is thin and somewhat stale. The most recent action — Stephens & Co. trimming its target to $27 in January — aligns almost exactly with the current price of $27.99. Lake Street retains a Buy with a $40 target, a 43% premium to current levels, but that target dates to September 2025 and should be treated cautiously. With the consensus mean at $27 and the stock trading essentially at that level, the Street is offering little directional conviction. The dividend score ranks in the 84th percentile, reflecting the $0.20 quarterly dividend reinstated in March 2026 — the first since 2021. That reinstatement carries some signalling value about management's view of cash flow stability.
The CEO sold 1,587 shares on April 23 for roughly $44,000, the same day the board received routine equity awards. The sale is small relative to the company's float and carries a low significance score. It does not alter the picture materially.
Earnings are scheduled for June 8. The last two prints produced next-day declines of 3.6% and 5.9% respectively, while the January 2026 release sparked a one-day gain of nearly 15% and held most of it over five days. The range of outcomes is wide. Between now and then, the key tension to watch is whether the short rebuild continues toward the 10%-plus level seen briefly this week, and whether the sharp unwind in put/call protection reflects genuine confidence or simply a rotation in how options are being structured ahead of the earnings date.
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