Xiaomi’s Short Interest Rises 65.7% to 80 Million Shares, Rating Cut to Hold
Xiaomi Co’s short interest soared 65.7% to 80.04 million shares as of December 31 from December 15, raising its days-to-cover ratio to an unprecedented 737.0 days on average daily volume of 108,612 shares. On December 17, Jefferies cut its rating on the company from Buy to Hold, leaving its consensus recommendation at Moderate Buy.
1. Short Interest Surges to Over 80 Million Shares
Data released for the period ending December 31st shows short interest in Xiaomi Co. (OTCMKTS:XIACF) spiked to 80,043,727 shares, up 65.7% from 48,308,716 shares reported on December 15th. This sharp increase represents one of the largest two-week rises in bearish positioning for XIACF in the past two years and signals growing market skepticism around the company’s near-term outlook.
2. Record-High Days-to-Cover Ratio Raises Liquidity Concerns
Based on an average daily trading volume of 108,612 shares, the days-to-cover ratio for XIACF has climbed to an extraordinary 737.0 days, indicating that it would take more than two years of typical trading volume for short sellers to cover their positions. Such an elevated figure may deter new buyers and exacerbate volatility, as any significant price move could trigger a forced short covering squeeze.
3. Analyst Sentiment Shifts to Hold Rating
On December 17th, Jefferies Financial Group downgraded XIACF from Buy to Hold, citing concerns over slowing smartphone volume growth in key markets and margin pressure from increased component costs. With one analyst now recommending Buy and one Hold, MarketBeat.com data shows the consensus rating remains a “Moderate Buy,” though investors should note that the average of the two opinions offers limited conviction.
4. Insider Transaction by U.S. Representative Gilbert Cisneros Jr.
In a filing disclosed on January 12th, Representative Gilbert Ray Cisneros, Jr. reported selling between $1,001 and $15,000 worth of XIACF shares on December 30th via his “150 MAIN STREET TRUST > BANK OF AMERICA” account. This trade follows a series of small-value sales in December across multiple technology and industrial names and may reflect a broader portfolio rebalancing ahead of the new congressional term.