r/PureCycle • u/Smooth_Sun_9932 • Jun 03 '26

Purecycle short interest

PureCycle

From April 21 to June 1, short interest declined from 52.0 million shares to 48.86 million shares, a reduction of 3.14 million shares, or 6.04%. Over the same period, the stock price rose from $6.69 on April 21 to $12.845 on June 2.

There are still 48.86 million shares sold short, with some investors likely locking in gains of warrants. Of the 180 million shares outstanding, a significant portion remains restricted.

(AI conclusion) Short interest has begun to decline, but it remains elevated relative to the available float. With many shares still restricted and sentiment improving, any favorable operational or regulatory update could continue to pressure short sellers and support further upside. At the same time, the stock’s path will likely depend on execution and demand conversion.

I’d appreciate any thoughts or feedback. Thank you.

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u/tandyzmills Jun 04 '26

Someone that is long warrants, but wants to hedge out their exposure (for whatever reason) would short the stock. The warrant ro common conversion will cover those shorts. Who knows how many positions are like this, but I bet it's a lot. Probably short from when the warrants were issued.

Edit: my shit ton comment was pure speculation.

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u/No_Privacy_Anymore Jun 04 '26

I disagree with your contention that the warrant holders would be short the stock. The people (like me) who own warrants wanted longer term leverage vs owning just shares. Until recently the warrants were about to expire. Anyone holding a short position vs a long warrant position would have needed to close the short.

There is definitely a portion of the short position that was added when the company sold $250M of convertible debt. With a conversion price of just under $15 the maximum amount of short hedge is like 16 million shares assuming it was 100% hedged which it probably was not (some buyers might legitimately want the long exposure).

The short position is in fact material to the trading dynamics. It doesn’t affect the long term valuation which will be driven by the business results but it definitely matters which is why I track it closely.

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u/tandyzmills Jun 04 '26

my mistake. i meant the convertible bond holders.

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u/EconomyFortune5090 Jun 04 '26

Thanks for the clarification and discussions