Rising Borrow Costs for WKHS
Workhorse Group (WKHS) has seen its borrow fees climb to 27.5% annually, reflecting increased difficulty in sourcing shares for short selling. With 23.8% of the float currently sold short, the stock remains a focal point for bearish sentiment. The rise in borrow fees above the 25% mark is a clear indicator of active borrow stress, suggesting that the supply of lendable shares is tightening.
Squeeze Risk Assessment
With a days-to-cover ratio of 7.6, WKHS has a relatively high liquidity requirement for shorts to exit their positions. This combination of high short interest and a longer time to cover creates a setup where any positive price momentum could lead to a significant short squeeze. Traders are advised to monitor the borrow availability closely, as further declines in supply could exacerbate the current fee pressure.
Key Takeaways
- WKHS borrow fees have reached 27.5%.
- Short interest remains high at 23.8% of float.
- Days-to-cover ratio is 7.6, indicating potential squeeze risk.
- Borrow market stress is increasing as fees cross the 25% threshold.
The Bottom Line
WKHS is experiencing significant borrow market pressure, making it a high-risk, high-reward candidate for both short sellers and those looking for potential squeeze setups.
Signal data sourced from Tapeboard. This post is an original analysis prepared by The Forensic Ledger from publicly available data. Not investment advice.
Not investment advice. This is original reporting and analysis prepared by The Forensic Ledger from publicly available data. Nothing here is a recommendation to buy, sell, or hold any security. Always consult the original source and a licensed professional. See our full disclaimer and source-citation policy.