Short Sellers Stock Up On Hostess Brands Again

Hostess Brands, Inc. TWNK, maker of the iconic Twinkie snack cake, rose from the dead in June 2013, and shares began trade publicly back in November 2016. And judging by the surge in the number of shares short in the most recent period, short sellers again think they have found something tasty in the stock.

Between the December 30 and January 13 settlement dates, the Kansas City-based bakery company saw the number of its shares short jump more than 39 percent to almost 3.78 million. The short interest has risen in six of the past seven periods, and at the most recent average daily trading volume, it would take more than two days to cover all short positions.

The stock was named as a small-cap pick by hedge fund founder Matt Drapkin during the short interest period. The share price ended the two weeks almost 6 percent higher, though it was up about 10 percent at one point. The Nasdaq was up less than 4 percent in that time. Hostess Brands is more than 14 percent higher year-to-date, hitting a post-IPO high on Thursday. The two analysts polled by Thomson/First Call recommend buying shares.

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