Faraday Future (NASDAQ:FFIE) stock has seemingly defied the odds and is yet again up by triple-digits, bringing its one-week return to over 4,000%. This comes despite the electric vehicle (EV) company not making any material announcements and receiving a Nasdaq delisting determination on April 24 due to its shares trading closing at 10 cents or less for 10 consecutive trading days. The company noted that it would appeal the determination by May 1, which will allow it to trade on the Nasdaq for 15 days after the appeal.
Faraday is also in violation of Nasdaq policies for failing to file its 2023 Form 10-K on time and closing below $1 for 30 consecutive business days.
The return of Roaring Kitty has likely contributed to FFIE stock’s gains, as well as an elevated short interest. According to Fintel, 95.33% of Faraday’s float is sold short. A short interest of 10% is generally accepted as high, while a short interest of 20% or greater is viewed as very high.
5 Investors Betting Big on FFIE Stock in Q1
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. With the May 15 first-quarter 13F deadline behind us, anyone can now see the equity and options positions of institutional investors as of the end of Q1.
During Q1, 32 13F filers reported a stake in FFIE, a decline of five filers from the prior quarter. This is an extremely low amount of filers. These filers increased their exposure to the company by 12.21% to 1.42 million shares.
Hedge fund exposure to FFIE increased by a significant 40.75% to 668,149 shares. However, this increase can be attributed to a few large filers increasing their stakes, such as Millennium Management and Geode Capital Management. FFIE accounts for less than 0.01% in both Millennium and Geode’s 13F portfolios since they own thousands of stocks. The amount of shares owned by hedge funds is still very low and is due to Faraday’s status as a penny stock with poor financials.
With that in mind, let’s take a look at the top investors of Faraday as of Q1:
- Vanguard owns 227,910 shares and picked up 473 shares.
- Geode Capital Management owns 221,207 shares and picked up 157,442 shares.
- Millennium Management bought 185,198 shares after previously owning zero shares.
- MCF Advisors owns 167,917 shares and bought 17 shares.
- Jane Street owns 165,528 shares and bought 68,513 shares.
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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.
