Grill-Maker Weber’s Record Two-Day Rally Punishes Short Sellers

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(Bloomberg) – Shares of short-term outdoor grill makers jumped for a second day, wiping out on-paper earnings for investors betting against companies like Weber Inc., according to S3 Partners.

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Weber jumped 36%, putting its shares on pace for a two-day rally that is the largest since its IPO in August. Trading volume soared with nearly 3 million Weber shares traded, more than ten times the average for the past month, according to data compiled by Bloomberg. Peer Traeger Inc. gained 15% in two days.

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Weber’s earnings on Thursday resulted in losses of nearly $12 million in the short-seller market, turning their year-to-date profits into losses of about $450,000, S3 Partners said in an e e-mail to Bloomberg News. In June, Weber shorts suffered losses of around $22.1 million against the market and more pain could be ahead, according to the analytics firm.

“With additional pressure on the buy side from long to hedge and virtually no relief on the sell side from shorting Weber stock, the price trajectory should continue to climb steadily as long stock buyers remain. assets,” said Ihor Dusaniwsky of S3 Partners. .

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Weber’s ticker has seen an increase in mentions on Reddit’s WallStreetBets over the past day with touts rivaling Revlon Inc. Call options for the stock to trade above $12.50 – a level it has not closed since January – saw a jump in activity and were the second most traded derivative linked to the company.

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