"EchoStar's inclusion in the S&P 500 creates sustained demand, as every dollar flowing into S&P 500-tracking ETFs and mutual funds buys EchoStar shares, putting pressure on short sellers."
"The stock has already punished shorts severely, with shares up 312.4% over the past year, leading to enormous losses for anyone short through 2025."
"Forward EPS is −$52.93, making EchoStar deeply unprofitable, and its legacy businesses are in structural decline, prompting a bear thesis."
"Insider selling has been aggressive, with significant shares sold by CEO Hamid Akhavan and other executives shortly before the S&P 500 inclusion."
EchoStar joined the S&P 500 on March 23, 2026, with 21.5% of its float sold short. This situation creates sustained demand from passive index funds. Short sellers face pressure as they cannot easily exit their positions due to continuous buying. The days to cover for shorts is 7.68, indicating difficulty in exiting. EchoStar's stock has risen 312.4% over the past year, causing significant losses for short sellers. Despite a bear thesis based on unprofitability and insider selling, two spectrum deals have changed the outlook.
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