Thursday, April 25, 2024
Stock Market

5 Investors Betting Big on Faraday Future (FFIE) Stock

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Faraday Future (NASDAQ:FFIE) stock is accelerating higher by more than 45% today as investors await the electric vehicle (EV) company’s release of its “global business transformation plan” on Dec. 15. Faraday stated that it will also release its vehicle delivery plan for the FF 91 Futurist on that day.

Meanwhile, shares of FFIE stock are still down more than 90% year-to-date (YTD) on the heels of delayed releases, executive departures and a shortage of cash. In July, the company pushed back production and delivery of the FF 91 to late 2022 due to supply-chain inefficiencies and a lack of capital. Now, deliveries of the vehicle aren’t expected until next year. Faraday had 369 preorders as of Nov. 17, down from 399 preorders as of June 30.

Since September, the company has received $450 million in capital support. This includes a $350 million equity line of credit from Yorkville Advisors Global and $100 million in funding from Senyun International. However, that may not be enough. The company recently warned that it “may require additional funds” in order to continue operations. Since inception, Faraday has incurred an accumulated deficit of $3.3 billion, per TechCrunch.

Meanwhile, FFIE stock seems ripe for a short squeeze. As of Nov. 30, there were a total of 52 million shares sold short with a value of $16.7 million. That’s equivalent to a short interest as a percentage of float of about 21.6%, which is high enough to cause a significant squeeze.

5 Investors Betting Big on FFIE Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 91 13F filers reported owning FFIE stock, a decline of 20 filers from the previous quarter. Furthermore, the institutional put/call ratio sits at 0.56, up from 0.54. That’s equivalent to 4.48 million puts and 8.05 million calls, implying a bullish options stance.

With that in mind, let’s take a look at the companies betting big on FFIE. Please note that this list only includes investors who filed a Q3 position update. For example, Founding Future Creditors Trust owns 64 million shares, but that figure is only accurate as of Q3 2021.

  1. FF Top Holding: 116.58 million shares. FF sold 1.11 million shares during Q3.
  2. Season Smart: 66.49 million shares. Season Smart’s position remained unchanged during Q3.
  3. YA II PN, owned by Yorkville Advisors Global: 39.56 million shares. YA acquired its entire stake during Q3.
  4. Senyun International: 25.33 million shares. Senyun acquired its entire stake during Q3.
  5. BlackRock (NYSE:BLK): 8.16 million shares. BlackRock purchased 610,748 shares during Q3.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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