In this article, we discuss the 15 most shorted stocks right now. If you want to read about some more shorted stocks, go directly to 5 Most Shorted Stocks Right Now.
The stock market has been volatile in the past few months as soaring inflation and rising rates combine to create an uncertain business environment in which growth stocks have taken a beating. Many elite investors who were bullish on growth firms at the beginning of this year have instead started shorting these growth stocks as recession fears rise. Even top firms like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB) have underperformed under these pressures.
However, recent data by the US government suggests that inflation may be peaking and it might be the right time to buy the dip on some of these growth firms or to initiate a short squeeze on the shorted stocks. Per latest figures, the consumer price index rose just 0.4% for the month in October, representing an increase of 7.7% from a year ago, the lowest annual increase since January and a slowdown from the 8.2% annual pace in the prior month. Top economists had been expecting increases of 0.6% and 7.9%.
Our Methodology
The companies that have a short interest of more than 20% were selected for the list. The short interest of each stock was taken from Yahoo Finance.
Most Shorted Stocks Right Now
15. Allogene Therapeutics, Inc. (NASDAQ:ALLO)
Number of Hedge Fund Holders: 17
Short Interest as of November 15: 37.57%
Allogene Therapeutics, Inc. (NASDAQ:ALLO) is a clinical stage immuno-oncology company that develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It is one of the most shorted stocks right now. It recently posted earnings for the third quarter of 2022, reporting a revenue of $0.05, beating market estimates by $0.4 million.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Woodline Partners is a leading shareholder in Allogene Therapeutics, Inc. (NASDAQ:ALLO) with 5.8 million shares worth more than $66 million.
Unlike Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Allogene Therapeutics, Inc. (NASDAQ:ALLO) is one of the most shorted stocks right now.
14. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP)
Number of Hedge Fund Holders: 12
Short Interest as of November 15: 46.77%
PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) is a precision oncology company that engages in the discovery and development of small molecule and tumor-agnostic therapies for p53 mutations in cancer. One of the leading product candidates for the firm is PC14586, a small molecule that corrects a p53 protein containing the Y220C mutation and restores wild-type p53 function.
At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $270 million in PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), compared to 15 in the previous quarter worth $374 million.
13. World Acceptance Corporation (NASDAQ:WRLD)
Number of Hedge Fund Holders: 9
Short Interest as of November 15: 28.01%
World Acceptance Corporation (NASDAQ:WRLD) engages in the small-loan consumer finance business. It is one of the most shorted stocks right now. On October 27, World Acceptance posted earnings for the second quarter of 2022, reporting losses per share of $0.05, beating market estimates by $0.37. The revenue over the period was $151.2 million, up 9.7% year-on-year and beating market estimates by $9.95 million.
Among the hedge funds being tracked by Insider Monkey, Beijing-based investment firm CAS Investment Partners is a leading shareholder in World Acceptance Corporation (NASDAQ:WRLD) with 755,768 shares worth more than $84.8 million.
12. Tricida, Inc. (NASDAQ:TCDA)
Number of Hedge Fund Holders: 22
Short Interest as of November 15: 40.86%
Tricida, Inc. (NASDAQ:TCDA) is a California-based pharmaceutical company. It focuses on the development and commercialization of veverimer (TRC101), a non-absorbed orally-administered polymer that has completed Phase III trial to treat metabolic acidosis in patients with chronic kidney disease by binding and removing acid from the gastrointestinal track.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm OrbiMed Advisors is a leading shareholder in Tricida, Inc. (NASDAQ:TCDA) with 10.2 million shares worth more than $99 million.
11. Clear Secure, Inc. (NYSE:YOU)
Number of Hedge Fund Holders: 15
Short Interest as of November 15: 23.46%
Clear Secure, Inc. (NYSE:YOU) provides a member-centric secure identity platform in the United States. It is one of the most shorted stocks right now. On August 15, Clear Secure posted earnings for the second quarter of 2022, reporting earnings per share of $0.00, beating market estimates by $0.04. The revenue over the period was $102.72 million, up 2.5% compared to the revenue over the same period last year and beating market estimates by $2.57 million.
At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $305 million in Clear Secure, Inc. (NYSE:YOU), compared to 19 in the previous quarter worth $354.9 million.
10. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Number of Hedge Fund Holders: 11
Short Interest as of November 15: 30.67%
AST SpaceMobile, Inc. (NASDAQ:ASTS) provides space-based mobile broadband services and is headquartered in Texas. The services that the company provides aim to serve users traveling in and out of areas without terrestrial mobile services on land, at sea, or in flight.
At the end of the second quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $19 million in AST SpaceMobile, Inc. (NASDAQ:ASTS), the same as in the previous quarter worth $32 million.
9. Big Lots, Inc. (NYSE:BIG)
Number of Hedge Fund Holders: 14
Short Interest as of November 15: 27.58%
Big Lots, Inc. (NYSE:BIG) operates as a home discount retailer in the United States. It is one of the most shorted stocks right now. On September 15, DoorDash noted that it has formed a new partnership with Big Lots to provide on-demand delivery of all home essentials and decor products directly to the consumers’ doorsteps.
On August 24, Deutsche Bank analyst Krisztina Katai maintained a Hold rating on Big Lots, Inc. (NYSE:BIG) stock and lowered the price target to $18 from $23, noting that the reduced estimates reflect elevated inventory levels and clearing activity.
At the end of the second quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $54.3 million in Big Lots, Inc. (NYSE:BIG), compared to 12 in the preceding quarter worth $63.8 million.
8. Bed Bath and Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 14
Short Interest as of November 15: 36.18%
Bed Bath and Beyond Inc. (NASDAQ:BBBY) operates a chain of retail stores of domestic merchandise. On October 25, officials of Bed Bath and Beyond noted that The Lynchburg Bed Bath and Beyond, located in Wards Crossing, will be closing in the coming months. On November 1, Bed Bath and Beyond announced the first private label of its BuyBuy Baby banner.
On September 30, Odeon Capital analyst Alexander Arnold upgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) stocks to Hold from Sell with an unchanged price target of $7.50.
At the end of the second quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $23 million in Bed Bath and Beyond Inc. (NASDAQ:BBBY), compared to 15 in the previous quarter worth $69 million.
7. CompoSecure, Inc. (NASDAQ:CMPO)
Number of Hedge Fund Holders: 14
Short Interest as of November 15: 22.33%
CompoSecure, Inc. (NASDAQ:CMPO) manufactures and designs metal, plastic, composite ID, and proprietary financial transaction cards in the United States and internationally. It is one of the most shorted stocks right now. On September 16, CompoSecure announced that its management team will participate in two upcoming investor conferences. On August 4, CompoSecure posted earnings for the second quarter of 2022, reporting earnings per share of $0.52. The revenue over the period was $97.2 million, up 55.0% compared to the revenue over the same period last year.
On October 11, JPMorgan analyst Reginald Smith initiated coverage of CompoSecure, Inc. (NASDAQ;CMPO) stocks with an Overweight rating and $10 price target, noting that company is the leading provider of premium metal payment cards, a market expected to double to roughly 60M cards issued by 2025, a $750M annualized revenue opportunity.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm LMR Partners is a leading shareholder in CompoSecure, Inc. (NASDAQ:CMPO) with 1.2 million shares worth more than $6.5 million.
6. Warby Parker Inc. (NYSE:WRBY)
Number of Hedge Fund Holders: 20
Short Interest as of November 15: 27.34%
Warby Parker Inc. (NYSE:WRBY) provides eyewear products. It offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, and contact lenses, as well as accessories, including cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray. On October 21, in an interview with CNN, the CEO of Warby Parker, David Gilboa, noted that Warby Parker is looking to open hundreds of brick-and-mortar locations. The company plans to have 200 stores complete with eye exam suites by year-end.
At the end of the second quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $400.3 million in Warby Parker Inc. (NYSE:WRBY), compared to 18 in the preceding quarter worth $1.2 billion.
In contrast to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Warby Parker Inc. (NYSE:WRBY) is one of the most shorted stocks right now.
In its Q2 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Warby Parker Inc. (NYSE:WRBY) was one of them. Here is what the fund said:
“Warby Parker Inc. (NYSE:WRBY) is an omnichannel retailer of prescription glasses, contacts, and sunglasses. The market’s rapid shift toward favouring profitable companies posed challenges for the company in the quarter as did weaker results which were pandemic-related.
Warby Parker is less profitable at this stage of its lifecycle as it invests in building out its retail footprint. We expect the company to be cash-flow positive within a year as it continues to benefit from scale and as retail foot traffic and productivity of the company’s retail stores return to normal as pandemic conditions ease. We may have had the opportunity to add this holding at a more ideal price. However, we remain excited about the long-term growth potential of the business, and the expected IRR.”
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Disclosure. None. 15 Most Shorted Stocks Right Now is originally published on Insider Monkey.