Lululemon Short Interest: Borrowing Volumes Falling Steadily Since Mid-February

Speaking with Benzinga about short interest in the current market, Karl Loomes, market analyst for SunGard's Astec Analytics highlighted the situation of Lululemon Athletica Inc. (NASDAQ: LULU).

According to the specialist, data from SunGard’s Astec Analytics “shows that borrowing volumes – the prerequisite of short selling – [at Lululemon] have been falling steadily since mid-February, currently down about 34% since that point. This pattern, which suggests short sellers were covering their positions, came both as its share price held fairly flat, later when it gapped-down, and subsequently as it recovered some ground.”

Loomes continued with a clarification: “Very simply put, it would seem short sellers are closing out their positions as they are not expecting its price to offer them much more on the downside at the moment. Whether this is just based on the coming results, or an overall confidence, it is harder to say."

Lululemon’s stock has gained almost 50 percent over the past six months. Shares traded recently at $63.60, nearly unchanged on the day.