Short selling data can add a lot of value for active investors. Not only can it help investors avoid stocks with deteriorating fundamentals, but it can also help investors identify stocks that have improving fundamentals.
In this report, we are going to analyze the short interest data on Just Eat Takeaway.com NV (TKWY:NA). Just Eat Takeaway.com is an online food delivery company that connects consumers with restaurants. The company, which currently operates in 24 countries, was created in January 2020 by the merger of Takeaway.com and Just Eat. It is listed on the Euronext Amsterdam stock exchange and has a market capitalization of €16.1 billion at present.
Just Eat Takeaway.com: Short Selling Data
Our short selling data shows that Just Eat Takeaway.com’s short interest has fallen significantly over the last few weeks. On 14 June, TKWY was the most shorted stock in all of Europe both in percentage terms (short interest of 14%) and by value (€1.5 billion worth of stock short). However, today, TKWY is not even in the top 10 most shorted stocks in Europe. Currently, the stock’s short interest is just 3.7%.
Short Sellers Have Closed Their Positions
This significant decrease in short interest tells us that a number of short sellers have closed or reduced their short positions here recently. This indicates that there has been a dramatic shift in sentiment towards the stock. We see this sentiment change as a positive development.
In terms of why short sellers have closed their positions here, it may be something to do with the fact that on 15 June, Just Eat Takeaway.com completed its acquisition of Grubhub. This transaction – which represents the company’s entry into online food delivery in the US – makes the company the largest food delivery platform outside China. The new company will be the market leader in Europe, Canada and Australia, with very strong positions in the most important markets in the US. Analysts believe that it could generate 40% to 50% more gross merchandise volume (GMV) and revenue than the original Just Eat Takeaway in the first year after acquisition.
Whatever the reason, we see the reduction in short interest as bullish. It suggests that the outlook for the stock has improved.