Short Selling

Vertex Energy stock soars in the face of continued Shorting

2iQ has covered many stocks that have been subjected to a short squeeze. This is a market condition where the stock’s price rises considerably while it is still being shorted by sellers. 

One company that, according to our data, has been a strong short squeeze candidate is Vertex Energy Inc (VTNR: US). Vertex is an environmental service provider that focuses on recycling waste systems in regions of the US. Currently, the company has an M Cap of $908.6million. 

Squeezing the Short 

VTNR’s utilization rate has been bobbing up and down in the year-to-date run. Since January 31, 2022 however, the company’s utilization rate has been standing at 100%.

As of May 23, the short interest rate is approx. 24.35%. The total shares on loan at the start of the year were 12,308,644. The number later rose to 18,729,136 on May 16, and is now slowly heading down again. As of May 23, the number of shares on loan is 15,724,055.

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

In contrast, the stock price soared by a whopping 188.32% since the start of the year. On January 3, VTNR was priced at $4.88 and since then has risen to a value of $14.07 as of May 24. 

Moving forward

In its recently unveiled Q1 2022 financial results, the company reported a total gross profit of almost $20.9 million. This result was a whopping 56% higher than the company’s gross profit in Q1 2021. On the same day as the results’ disclosure, the stock rose from a closing price of $9.65 to $10.67, marking a surge of 10.57% in a single day. Since then, VTNR stock has been on a slow and steady rise. 

Other positive developments from the company included Vertex completing its acquisition of Mobile Refinery from Shell USA Inc. Vertex’s CEO said, “The acquisition of the Mobile refinery represents a transformative moment in the history of Vertex, one that positions us to become a leading regional supplier of both renewable and conventional products.

One post on the subreddit, r/SqueezePlays stated that short sellers were trying to push down the stock price. But the company’s operations and future earnings announcements could propel it further up. 

So far, VTNR has given a performance unlike any other. At the start of 2022, the stock was valued at $4.88 per share. Come May 24, the price has risen to $14.07. This means VTNR has skyrocketed by roughly 188.32%. If the company’s performance continues to persevere as do its steady followers, more bullish moves are yet to come. 

Recent Articles