14 Worst 52-Week High Stocks to Buy According to Short Sellers

10. MannKind Corporation (NASDAQ:MNKD)

52 Week Range: $3.17 – $6.81

Current Share Price: $6.66

Short % of Shares Outstanding: 14.98%

Number of Hedge Funds holding stakes as of Q2 2024: 20

MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company that develops and commercializes inhaled therapeutic products for endocrine and orphan lung diseases. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes. The company’s product pipeline also includes Tyvaso DPI (Treprostinil) for treating pulmonary arterial hypertension and pulmonary hypertension.

MannKind Corporation (NASDAQ:MNKD) delivered its highest quarterly revenues of $72 million in Q2, propelled by its leading products, Tabesa DPI and Afrezza. However, it plunged to a net loss of $2 million, attributed to early repayment of debts.

Analysts at Cantor Fitzgerald and RBC Capital remain bullish about MannKind Corporation (NASDAQ:MNKD)’s long-term prospects, which are backed by a robust pipeline that should sustain revenue growth. However, higher-than-expected interest expenses and underperformance in the diabetes business continue to send jitters in the investment community, depicted by the high short interest rate of 14.98%.

Additionally, dependence on upcoming clinical trials also adds a layer of inherent risk that underscores why it could be one of the worst 52-week high stocks to buy, according to short sellers. Additionally, the stock trades at a premium with a price-to-earnings multiple of 36 while not rewarding investors with dividends.

According to Insider Monkey’s second-quarter database, MannKind Corporation (NASDAQ:MNKD) was part of 20 hedge fund portfolios, compared to 19 funds in the prior quarter. Seth Rosen’s Nitorum Capital is the leading stakeholder of the company, with 10.08 million shares worth $52.62 million.