Voestalpine’s ADRs Face Mysterious 559% Surge in Short Interest Despite Strong Earnings
A sharp spike in U.S. short interest against voestalpine has puzzled analysts, despite the company’s solid financial performance. The Austrian steelmaker reported strong third-quarter results, yet its American depositary receipts (ADRs) saw a sudden 559.9% surge in bearish bets. The disconnect suggests unusual activity in the stock market today, where trading volumes remain thin.
The short interest in voestalpine’s ADRs jumped dramatically over a few days. Positions climbed from just 910 shares to 6,005—a striking increase, though still tiny compared to the firm’s €7.1 billion market value. Market observers noted the speed of the rise, which stood out even in a volatile trading environment.
Meanwhile, the company’s fundamentals appear robust. In its latest quarter, voestalpine beat expectations, delivering earnings per share of $0.13. Analysts continue to favor the stock, with Deutsche Bank and UBS among those maintaining a 'Moderate Buy' consensus rating.
Elsewhere in the sector, rival Salzgitter AG has seen its shares rise by nearly 50% since November, following an analyst upgrade. Voestalpine’s own subsidiary, Böhler Edelstahl, is also on a growth path, with projections placing its niche markets at over $1 billion by 2032. The source of the heavy shorting remains unclear, as no single institution has been publicly identified as the largest holder of bearish positions.
The sudden short interest spike contrasts with voestalpine’s steady operational performance and positive analyst outlook. While the absolute number of shares shorted is small, the rapid increase has drawn attention to potential quirks in the ADR market. The company’s long-term growth prospects, particularly in specialty steel, remain unchanged by the trading activity.
