Ancestry.com Falls 13% After NBC Declines to Renew Show
Shares of Ancestry.com (NASDAQ: ACOM) are under pressure on Monday after NBC decided not to renew the "Who Do You Think You Are" television show for a fourth season. The company said that it would seek other avenues of distribution in light of the news. The stock has lost more than 13% and was last trading at $22.70. Volume has been very heavy in the name with around 4 million ACOM shares trading hands compared to a 3-month daily average of under 1 million.
On an intra-day basis, the name is actually trending higher after a large gap at the open of the trading day. The stock opened the session at $21.51 versus its close on Friday of $26.16. Ancestry.com has a very large short interest with as much as 21.49% of its float sold short in recent trading sessions.
The likely explanation for the stock's behavior on Monday is that short-sellers used the big opening drop in the name to take some of their bearish bets off the table at favorable prices. This trend could continue in the coming sessions, and ACOM may actually be a long idea from current levels.
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