Fiserv now ranks above Visa Inc. V-0.95% and Fidelity National Information Services Inc. FIS+1.81% , the next largest short plays in the data-processing and outsourced-services sector with upwards of $4.5 billion in short interest each. Fidelity National Information Services is involved in a mega-merger of its own, after announcing in March that it would be buying Worldpay Inc. WP+1.72% in a cash-and-stock deal valued at $43 billion.
Short interest in Fiserv has mounted in recent months, even as the stock has climbed. Bears are staring down $791 million in mark-to-market losses so far in 2019, and as the shorting continues, S3’s Ihor Dusaniwsky thinks that “the buildup in short interest is more than a merger-[arbitrage] position.” Bears might also be making a bet that Fiserv will disappoint with its next quarterly report, due out Thursday after the closing bell.
See also: Global Payments and TSYS agree to $21.5 billion merger, CEO says more software deals could follow
Just yesterday, Fiserv bears shorted another 1 million shares, bringing total shares shorted to 55.78 million. So far this year, the company has seen shares shorted climb by 760%, or 49.3 million shares, but Dusaniwsky says the activity might ease up in the coming days.
Short interest in Fiserv has mounted in recent months, even as the stock has climbed. Bears are staring down $791 million in mark-to-market losses so far in 2019, and as the shorting continues, S3’s Ihor Dusaniwsky thinks that “the buildup in short interest is more than a merger-[arbitrage] position.” Bears might also be making a bet that Fiserv will disappoint with its next quarterly report, due out Thursday after the closing bell.
See also: Global Payments and TSYS agree to $21.5 billion merger, CEO says more software deals could follow
Just yesterday, Fiserv bears shorted another 1 million shares, bringing total shares shorted to 55.78 million. So far this year, the company has seen shares shorted climb by 760%, or 49.3 million shares, but Dusaniwsky says the activity might ease up in the coming days.
