Shares of Everspin Technologies whipsawed this week, rebounding 11% to $36.03 on May 22 after a brutal selloff that dragged the stock from $37.57 to as low as $28.94 in just three trading days. The bounce looks like a classic short-covering rally — traders who bet against the stock rushing to buy shares and lock in profits — but the fundamental questions raised by a prominent short-seller and a wave of insider sales remain unanswered.
A Short-Seller Called the Stock Overblown, and Insiders Seemed to Agree
On May 19, Kerrisdale Capital announced a short position on Everspin , arguing that the stock's roughly 300% surge in recent weeks was driven by speculation, not fundamentals . Days later, filings revealed CEO Sanjeev Aggarwal sold 110,976 shares worth $3.7 million , while director Geoffrey Ribar sold 27,488 shares on May 20 . Earlier, director Glen Hawk dumped 48,563 shares on May 15 . When multiple insiders sell into a rally, it sends a clear signal: the people who know the business best thought the price was rich.
The Numbers Don't Yet Match the Hype
Everspin's market cap sits around $900 million — for a company that reported Q1 revenue of just $14.9 million and a GAAP net loss of $0.3 million . Full-year 2025 revenue was $55.2 million . That puts the stock at roughly 16 times trailing sales — a nosebleed level for a company still losing money on a standard accounting basis. One valuation model pegs fair value at just $7.36 per share , underscoring the disconnect.
Real Catalysts Exist, but They're Long-Dated Bulls point to genuine developments: a new $40 million U.S. defense contract , a 10-year manufacturing partnership with Microchip Technology , and Q1 product sales up 28% year-over-year . Gross margins held above 52% . But the new factory capacity won't come online for 18 to 30 months , meaning revenue growth must prove itself on existing infrastructure first.
Today's Bounce Doesn't Resolve the Core Tension The rebound reflects technical buying, not a fundamental reassessment. Insiders have sold $3.9 million in shares over three months with zero purchases . Until Everspin's quarterly revenue trajectory closes the gap with its valuation, every rally will face the same question: Is this a real business transformation, or a speculative trade dressed in an AI-adjacent narrative?