Here’s What May Trigger a Short Squeeze for New S&P 500 Member EchoStar

By Trey Thoelcke Published Mar 25, 8:35AM EDT

Quick Read

EchoStar (SATS) entered the S&P 500 with 21.5% short interest and days to cover at 7.68, creating sustained structural buying pressure from passive index funds that shorts cannot easily outrun; shares have rallied 312.4% over the past year despite forward EPS of −$52.93.
EchoStar’s spectrum deals with AT&T (approximately $22.65B) and SpaceX (approximately $20B plus $2.6B in equity) have transformed it from a legacy TV business in structural decline into a bet on SpaceX optionality, with analyst consensus at $129.60 versus insider selling near current levels signaling management skepticism about valuations above today’s price.
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Here’s What May Trigger a Short Squeeze for New S&P 500 Member EchoStar — © Getty Images

EchoStar (NASDAQ: SATS) landed in the S&P 500 on March 23, 2026, and it arrived with baggage: 21.5% of its float is sold short. That combination is rare. Passive index funds are now structurally obligated to buy and hold the stock as long as it remains in the index, while a meaningful portion of the market is betting against it.

Why the S&P 500 Matters for Shorts

Index inclusion creates sustained demand. Every dollar flowing into S&P 500-tracking ETFs and mutual funds buys EchoStar shares. As the index rebalances and new money enters, passive funds must continuously hold the stock. For short sellers, that sustained structural buying pressure cannot be outrun simply by waiting.

The short interest data underscores how uncomfortable that position is. Days to cover stand at 7.68, meaning shorts would need more than a week of average volume to fully exit. The peer group average short interest is 19.5%, so EchoStar’s short interest is notably higher. Short interest increased 4.23% from the prior January 2026 report, suggesting bears were adding into the inclusion announcement rather than retreating.

The stock has already punished shorts severely, with shares up 312.4% over the past year. Anyone short through 2025 has absorbed enormous losses.

Why Shorts Were There in the First Place

The bear thesis is not irrational. Forward EPS is −$52.93, making EchoStar deeply unprofitable. Its legacy businesses, including DISH TV, Sling TV, and HughesNet, are in structural decline. A securities investigation was launched by Robbins Geller Rudman & Dowd in June 2025 regarding potential federal securities law violations. Insider selling has been aggressive: CEO Hamid Akhavan sold 71,005 shares on March 6, 2026, while COO John Swieringa disposed of 50,088 shares at prices near $113 to $114 on March 4, and CLO Dean Manson sold 19,031 shares near $114.50 to $114.60 on March 5.

What Changed the Thesis

Two spectrum deals rewrote the story. AT&T has agreed to buy EchoStar’s spectrum for approximately $22.65 billion, pending regulatory approval, with an expected mid-2026 close. Separately, SpaceX agreed to purchase AWS-3 licenses for approximately $20 billion plus $2.6 billion in SpaceX equity. Morningstar raised its fair value estimate to $120, calling EchoStar “increasingly a bet on SpaceX.” The SpaceX equity stake represents optionality ahead of a potential IPO. Analyst consensus sits at $129.60, with three Buy ratings, two Holds, and one Sell.

The Counterargument Remains Real

The AT&T deal is not closed. Regulatory approval is not guaranteed, and the bear case survives if the deal collapses. Insider selling at current price levels signals that management sees fair value closer to where the stock trades today than where bulls project. Reddit sentiment scores a bearish 28, with the most-engaged post referencing a SpaceX “rug pull” in the space sector.

The conditions for a squeeze exist. The AT&T deal closing is the catalyst that determines whether those conditions trigger one.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.