The aerospace sector presented a study in contrasts this week, with established giant GE Aerospace riding a wave of institutional confidence following strong earnings, while Firefly Aerospace Inc. faced a notable uptick in bearish sentiment. As investors digest data for the upcoming year, the divergence highlights how market participants are positioning themselves for 2026.
GE Aerospace Rallies on Strong Q4 Performance
GE Aerospace shares climbed approximately 3% this week, closing at $317 per share. The rally appears to be driven by fundamental strength rather than speculative trading, as investors reacted favorably to the company’s fourth-quarter financial results. The numbers were robust across the board: revenue jumped 20%, earnings per share (EPS) rose 19% to $1.57, and the company generated a healthy $1.8 billion in free cash flow.
These results cap off a transformative period for the company. Following the completion of the General Electric split, the entity now operating as GE Aerospace has sharpened its focus on the commercial aviation and defense markets. This strategic pivot seems to be paying off. Total orders surged 32% over the last year, swelling the company’s backlog to approximately $190 billion—a massive buffer that supports future revenue visibility.
CEO Larry Culp described 2025 as an “excellent year” for the company and set the stage for continued momentum. Management is projecting another year of low double-digit revenue growth and an EPS increase of nearly 15% for 2026.
Institutional Investors Double Down on GE
The confidence in GE’s trajectory isn’t just limited to retail traders; “smart money” is actively accumulating shares. Recent filings reveal significant activity among institutional holders positioning themselves for the company’s next phase of margin expansion and cash flow growth.
Compagnie Lombard Odier SCmA increased its stake by an impressive 39.4%, bringing its holding to 55,936 shares valued at roughly $16.83 million. Similarly, Prospera Financial Services boosted its position by 18.1%, and Prime Capital Investment Advisors added 23.6% to their holdings. While there were some reductions from the State of Michigan Retirement System and John G Ullman & Associates, the overall trend points toward institutional accumulation.
Bearish Bets Increase on Firefly Aerospace
While GE enjoys a bullish tailwind, the market sentiment surrounding Firefly Aerospace Inc. (NYSE:FLY) has grown more cautious. Short interest in the stock—a key indicator of how many investors are betting against the company—has risen 36.36% since the last reporting period.
According to the latest exchange data, 4.72 million shares of Firefly are currently sold short. This represents 3.0% of the total shares available for trading. At current trading volumes, the “days to cover” ratio stands at 1.34, meaning it would take short sellers just over a day to close out their positions if buying pressure spiked.
For the uninitiated, rising short interest often signals that a segment of the market expects the stock price to decline. However, it can also act as a contrarian indicator; if the stock rises unexpectedly, short sellers may be forced to buy back shares to limit losses, potentially driving the price even higher.
Contextualizing the Short Data
Despite the sharp percentage increase in bearish bets, Firefly’s situation requires context. When measured against its industry peers, the company’s short interest remains relatively low.
According to data from Benzinga Pro, the average short interest as a percentage of float for Firefly’s peer group sits at 10.29%. With Firefly at just 3.0%, it is significantly less targeted by short sellers than many of its competitors with similar financial structures and market capitalizations. While the recent spike indicates that traders are watching the stock closely, perhaps anticipating near-term volatility, the overall bearish positioning has not yet reached the critical levels seen elsewhere in the sector.
