Short Selling

Short Selling Report: AMBU A/S (AMBUB: DC)

A doctor wearing surgical suit, mask and cap staring somewhere and the company logo and sologan written on the red rectangular in the right corner of image

Ambu A/S (AMBUB: DC) is a Danish company that works in the development and production of single-use endoscopy solutions, diagnostic and life-supporting equipment. The company also markets and supplies these to hospitals, rescue services, among others. It is listed on the Copenhagen Stock Exchange with a market capitalization of €3.47 billion according to its 1st April, 2022 data.

Currently priced at DKK 100.15, the company has been subjected to significant shorting activity.

Short Selling:

On 3rd January, 2022, of the 223.388 million shares outstanding, approximately 3.96% or 8.846 million shares were shorted, coming to a net €1,581.753 million.

The shares were shorted by a total of 5 managers, including Public Equity Partners Management LP, AQR Capital Management LLC, Kintbury Capital LLP, Marshall Wace LLP, and Blackrock Investment Management (UK) Limited.

As of 1st April, 2022, at the time of writing this article, of the 223.396 million shares outstanding, approximately 6.89% or 15.392 million shares worth €1.539 billion have been shorted. The shares were shorted by a total of 9 managers, including Worldquant LLC, Marshall Wace LLP, Qube Research & Technologies Limited, Marshall Wace Asia Limited, Kuvari Partners LLP, and Kintbury Capital LLP, RTW Investment LP, AQR Capital Management LLC and Blackrock Investment Management (UK) Limited.

Amongst these, Marshall Wace LLP shorted with the highest percentage of 1.40 of the total shares outstanding. The shorted shares increased by a whopping 74% from the start of the year, with the share price falling by approximately 44% from closing price of 178.80 as of 3rd January, 2022.

Different short selling measures are depicted in this image, which gives shorting statistics.

Quarterly Analysis & Recent News:

Based on the fundamental analysis, the company was performing poorly in the first quarter starting in October 2021. The revenue for the first quarter was based on negative organic growth of -1% (39%), with a reported increase of 2% (33%). For the quarter, the gross margin was 61.5% (65.4%). Product mix, labour and raw material inflation, as well as overhead from the factory's ramp-up in Mexico, all contribute to the lowering gross margin. For the quarter, the EBIT margin was 3.9% (14.6%). Higher distribution costs are mostly to blame for the lower EBIT margin.

According to the company’s press release on 15th March 2022, Thomas Schmidt has been appointed as the new CFO and member of the Executive board by Ambu’s board of directors. Thomas Schimdt will take over his role on 1st June 2022, while the former CFO, Michael Højgaard, will step down by the end of May 2022.

While the company is targeted by short sellers, it is unclear whether or not changes in management could take the stock in a different direction.

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