IHS Markit: Shorts up at Diebold Nixdorf
10 August 2018 New York
Image: Shutterstock
As stock in debt-laden US automated teller machine manufacturer, Diebold Nixdorf fell 10 percent yesterday, according to Samuel Pierson of IHS Markit.
Pierson said: 鈥淥n 1 August Diebold Nixdorf reported a US$0.21 per share loss on better than expected revenues, sending shares into a tailspin as analysts had forecast a $0.01 per share profit, per Factset.鈥�
鈥淚n the week since the report shares have fallen more than 50 percent, reaching the lowest point since the firm鈥檚 initial growth phase in the early 1980s.鈥�
Pierson added: 鈥淓quity shorts have increased their position by 3.4 million shares since 1 August, for a total of 29.3 million shares or 31 percent of free float. In dollar terms the position has been taken down from a year-to-date high of $352 million on April 30 to $150 million at present, owing to the declining share price.鈥�
He continued: 鈥淣otably, short demand for the 8.5 percent 2024 bond has also spiked following the earnings report, as the bonds have also been in a free-fall, hitting a new low of 67.13 cents on the dollar on 7 August, after having traded down from 92 cents on 31 July.鈥�
鈥淭he short position in the 2024s is currently $114 million at par, up from $68 million prior to the earnings report.鈥�
Pierson said: 鈥淥n 1 August Diebold Nixdorf reported a US$0.21 per share loss on better than expected revenues, sending shares into a tailspin as analysts had forecast a $0.01 per share profit, per Factset.鈥�
鈥淚n the week since the report shares have fallen more than 50 percent, reaching the lowest point since the firm鈥檚 initial growth phase in the early 1980s.鈥�
Pierson added: 鈥淓quity shorts have increased their position by 3.4 million shares since 1 August, for a total of 29.3 million shares or 31 percent of free float. In dollar terms the position has been taken down from a year-to-date high of $352 million on April 30 to $150 million at present, owing to the declining share price.鈥�
He continued: 鈥淣otably, short demand for the 8.5 percent 2024 bond has also spiked following the earnings report, as the bonds have also been in a free-fall, hitting a new low of 67.13 cents on the dollar on 7 August, after having traded down from 92 cents on 31 July.鈥�
鈥淭he short position in the 2024s is currently $114 million at par, up from $68 million prior to the earnings report.鈥�
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