To assess the potential for a short squeeze in DPRO, it's essential to look at several key metrics, including short interest, days to cover, and institutional ownership. These data points provide a clearer picture of the current market positioning and potential for volatility.
DPRO Short Squeeze Potential
- Short Interest: As of the most recent data, DPRO's short interest stands at approximately 1.76 million shares. While this number alone doesn't tell the whole story, it represents a significant portion of the company's free float.
- Short Interest % of Float: The short interest as a percentage of the free float is a critical indicator. For DPRO, this figure is currently around 14.28%. A short interest percentage above 10% is often considered notable, and above 20% can indicate significant short pressure and potential for a squeeze.
- Days to Cover: This metric estimates how many days it would take for short sellers to cover their positions, given the average daily trading volume. DPRO's days to cover is approximately 1.60. A higher number of days to cover (typically above 5-10) suggests that covering short positions could lead to substantial buying pressure and price appreciation. While 1.60 is not extremely high, it still represents a concentrated short position relative to liquidity.
- Institutional Ownership: Institutional ownership can play a role in short squeezes. High institutional ownership with low float can amplify price movements. Conversely, institutions might lend shares for shorting. DPRO has seen a notable increase in institutional ownership recently, with 13F filings showing a 19.33% increase in shares held by institutions in the last quarter, totaling 1.83 million shares. This indicates growing institutional interest, which could either provide stability or, if sentiment shifts, contribute to volatility.
- Borrow Fee Rate: The borrow fee rate for DPRO is currently 1.71%. A higher borrow fee rate indicates increased demand to short the stock and can make shorting more expensive, potentially pressuring short sellers to cover.
While DPRO shows a notable short interest as a percentage of float (14.28%), the days to cover (1.60) is relatively low, suggesting that short sellers could cover their positions fairly quickly under normal trading conditions. However, the recent increase in institutional ownership could add another dynamic to watch. A significant positive catalyst or unexpected news could still trigger a rapid covering of these short positions, leading to a squeeze.
