Short Sellers Throwing In The Towel On BlackBerry

BlackBerry Ltd BBRY has been one of the most polarizing, controversial and unpredictable stocks in the market in recent years. Long-time traders and smartphone users are well aware of the company’s fall from grace that sent shares tumbling more than 85 percent from December 2010 to December 2013.

However, short sellers who bet on BlackBerry’s demise have been frustrated over the past several years. Despite BlackBerry's announcement earlier this year that it will completely terminate its once-dominant phone business, shares are actually up more than 30 percent since late-2013.

After jumping ship on its handset business, BlackBerry now plans to focus its attention on its device management suite, which allows companies to monitor employees’ phones and sensitive communications.

Since BlackBerry bailed on its phone business, it seems a number of BlackBerry short sellers are bailing on their trades as well. Short interest is down 11.9 percent since mid-November, while the stock’s share price is up 3.3 percent in that time.

According to shortsqueeze.com, there are still more than 54.6 million shares of BlackBerry held short. That number represents an elevated 10.5 short percent of float with 11.5 days to cover.

If many of the remaining BlackBerry shorts continue to throw in the towel in coming months, the stock could see additional upside from the resulting squeeze.