BIRK Borrow Market Hits Breaking Point

BIRK short interest has jumped 38% in a single week. The lending market tells an even starker story.

A Lending Pool Running Dry

Availability has collapsed to just 3.4%. That means fewer than one share remains available to borrow for every 28 already lent out. For most of the past month, availability sat at or below 0.5% — the borrow pool has been effectively exhausted since late May.

Cost to borrow reflects that scarcity. It now stands at 16.7%, up 52% over the past week. A month ago it was below 1.1%. That 16-fold climb in 30 days tells you how abruptly new short demand has outpaced supply in the lending market.

The ORTEX short score has moved in lockstep. It hit 84.3 on June 11, up from 76.7 on May 29. That ranks in the 1st percentile for short pressure — virtually every stock in the database carries a lower reading.

Short Interest at 9.1% of Float

SI now stands at 9.1% of free float, representing roughly 16.75 million shares. That is up 53% over the past month. Days to cover is 4.97 based on the latest FINRA settlement data.

The put-call ratio has climbed to 2.29, above its 20-day average of 1.52. That's a PCR z-score of 1.55 — not extreme, but directionally consistent with the short buildup.

Analysts Still Constructive, But Targets Have Fallen

Several analysts trimmed price targets after the May earnings print. Telsey Advisory Group cut from $60 to $45. BTIG moved from $65 to $60. Piper Sandler dropped to $55. All maintained positive ratings. The consensus mean target is now $45.23 — essentially in line with the current price of $46.21.

That near-parity between price and target, after a recent 18% monthly rally, may be part of what's drawing short sellers in. The stock has recovered sharply. Bears appear to be arguing the recovery has overshot.

L Catterton, the majority holder with 54% of shares, trimmed 15.3 million shares in Q1. That is the largest single holder move in the institutional table.

Data Summary

• Short interest: 9.1% of free float, up 38% in one week
• Cost to borrow: 16.7%, up from ~1.1% one month ago (+1,558% over 30 days)
• Availability: 3.4% — near-empty lending pool
• ORTEX short score: 84.3 (1st percentile for short pressure)
• Put-call ratio: 2.29 vs. 20-day mean of 1.52
• Next earnings: August 13