Shorts Are Getting Squeezed as Buffalo Wild Wings Soars
04/22/2009 9:54 am EST
Buffalo Wild Wings (BWLD) was up more than 5% yesterday and finished strong into the final hour of trading, with the stock adding to its already impressive year-to-date rally of 42.7%. Yesterday's gains were sparked by a bullish brokerage note. Oppenheimer started coverage of the stock with an "outperform" rating and a price target of $52.
There's ample opportunity for additional brokers to follow suit. Zack's reports six "hold" ratings on BWLD, compared to four "buy" or better recommendations. If more analysts decide to follow Oppenheimer's lead, it could translate to a fresh burst of buying pressure for the security.Luckily for BWLD bulls, there's no shortage of sideline cash to support the restaurant chain's uptrend. Short interest on the shares declined by 7.5% during the past two weeks, but these bearish bets still account for a respectable 31.6% of the equity's float. At the stock's average daily trading volume, it would take two weeks for all of these shorted shares to be repurchased.
By Elizabeth Harrow of Schaeffer's Trading Floor Blog