NEW YORK (Reuters) – Short interest in shares of beleaguered First Republic Bank rose by $389.8 million to $945.5 million in the past 30 days, and the bearish positions turned profitable for the month as its shares skidded on Tuesday, data from S3 Partners showed.
Shares of First Republic plunged 43% to a record low a day after the bank released first-quarter earnings, reporting that deposits tanked by more than $100 billion.
Short positions in First Republic Bank now account for 32.5% of its stock available to trade. Traders typically short a company, in anticipation its share price will decline, by borrowing stock.
Ihor Dusaniwsky, managing director of Predictive Analytics at S3, in an email exchange with Reuters said First Republic’s plunge has moved short sellers in its stock into a profit for April.
“FRC shorts are up +$320.3 million in mark-to-market profits on today’s -33.9% price move,” he wrote. “FRC shorts are now profitable in April, up +$195.0 million in month-to-date mark-to-market profits.”
Year to date shorts positions in First Republic are up $971.8 million, according to Dusaniwsky.
(Reporting by Herbert Lash in New York; Editing by Matthew Lewis and David Gregorio)
