In this article, we will look at the 15 most shorted stocks on Wall Street right now. If you want to explore similar stocks, you can also take a look at 5 Most Shorted Stocks Right Now on Wall Street.
Short selling is a way for traders to make money by betting that the price of a stock will go down. It involves selling borrowed shares of a company in the hopes that the price will go down before the investor must return them. If the price does go down, the investor can buy back the shares at a lower price and pocket the difference. It is important to remember that short selling is a risky strategy and should only be used by experienced investors.
Analyst’s Take on Shorted Stocks
On February 27 S3 Partners Head of Predictive Analytics, Ihor Dusaniwsky, appeared in an interview on Yahoo Finance where he discussed the current trading patterns among institutional investors. Dusaniwsky noted that he sees “more leveraging, more asset accumulation, both on the long and the short side by hedge funds” in 2023, relative to 2022. Ihor Dusaniwsky noted that there are some stocks “that are crowded and losing money” and cautioned against them because they can potentially be “squeezable shorts”. Ihor Dusaniwsky also spoke about how he identifies a “squeezable stock” and said that he is basically “looking at losses” since “no one gets out of a profitable trade”. Ihor Dusaniwsky noted that “market momentum plays in both the long and short side” when he spoke about the potential factors that can trigger a short squeeze. Dusaniwsky also spoke about how investors’ attitudes have shifted and noted that investors would buy into profitable companies before, based on business fundamentals. However, now investors think that “this might be a profitable company but the Street hates it” and so they steer clear of the trade. Ihor Dusaniwsky also weighed in on large-cap and mega-cap stocks that are being, both, bought and sold by investors. Ihor Dusaniwsky said that “there’s kind of a market issue here” and there are “less stocks in the mega and large-cap names, where the hedge funds who have a lot more money need to invest their money into”. He further noted that large-cap and mega-cap stocks have an overlap as they are “the most held long and short”. Here are some comments from Ihor Dusaniwsky:
“The scary thing is that, you’ve got guys on both sides of the market. So when we have market news, one side wins and one side loses. You start seeing action, buying, selling, buying to cover short selling, and that really just makes the stock prices of some of these names have these one-day volatilities that really can scare the hell out of some investors.”
Some of the most shorted stocks right now on Wall Street include Kohl’s Corporation (NYSE:KSS), CNX Resources Corporation (NYSE:CNX), and Carvana Co. (NYSE:CVNA). Let’s take a look at these stocks, among others, in detail.
Photo by Roberto Júnior on Unsplash
Our Methodology
We used the stock screener from Yahoo Finance to screen for the most shorted stocks and sifted through the top 100 stocks on the list. We then sourced the hedge fund sentiment for each stock from Insider Monkey’s database of over 900 elite money managers, as of Q4 2022. Finally, we picked the 15 stocks that had the most negative hedge fund sentiment on the margin and came up with the 15 most shorted stocks right now on Wall Street. We have ranked these stocks in ascending order of the number of hedge funds that have stakes in them. Where the number of hedge funds was the same, we used short interest as the tie-breaker. These stocks are ranked in ascending order of both metrics.
15 Most Shorted Stocks Right Now on Wall Street
15. PetMed Express, Inc. (NASDAQ:PETS)
Number of Hedge Fund Holders: 9
Short % of Float (Jan 30, 2023): 26.95%
PetMed Express, Inc. (NASDAQ:PETS) is an American pet pharmacy that sells prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. PetMed Express, Inc. (NASDAQ:PETS) is one of the most shorted stocks on Wall Street right now. As of January 30, 26.95% of the company’s total float has been shorted.
On February 6, PetMed Express, Inc. (NASDAQ:PETS) posted earnings for the fiscal third quarter of 2023. The company missed EPS estimates by $0.20. The company generated a revenue of $58.87 million, down 3.04% year over year and short of expectations by $3.16 million.
PetMed Express, Inc. (NASDAQ:PETS) was held by 9 hedge funds at the close of Q4 2022. The total stakes of these hedge funds amounted to $33.4 million, down from $42.9 million in the preceding quarter with 15 positions. The hedge fund sentiment for the stock is negative.
As of December 31, Citadel Investment Group is the largest investor in PetMed Express, Inc. (NASDAQ:PETS) and has disclosed a position worth $6.91 million in the company.
Some of the stocks that hedge funds have sold and shorted heavily include Kohl’s Corporation (NYSE:KSS), CNX Resources Corporation (NYSE:CNX), and Carvana Co. (NYSE:CVNA).
14. Gevo, Inc. (NASDAQ:GEVO)
Number of Hedge Fund Holders: 11
Short % of Float (Jan 30, 2023): 19.90%
Gevo, Inc. (NASDAQ:GEVO) is a renewable fuels company operating through four divisions: Gevo, Agri-Energy, Renewable Natural Gas, and Net-Zero. This February, Stifel analyst Derrick Whitfield maintained his $5 price target and a Buy rating on Gevo, Inc. (NASDAQ:GEVO).
With a short interest of 19.90% as of January 30, Gevo, Inc. (NASDAQ:GEVO) is one of the most shorted stocks on Wall Street right now.
At the close of Q4 2022, Gevo, Inc. (NASDAQ:GEVO) was a part of 11 investors’ portfolios that disclosed collective positions worth $15.8 million in the company. This is compared to 15 hedge funds in the previous quarter with stakes worth $19.8 million. The hedge fund sentiment for the stock is negative.
As of December 31, Two Sigma Advisors is the most prominent shareholder in Gevo, Inc. (NASDAQ:GEVO) and has disclosed a position worth $2.72 million in the company.
13. Ebix, Inc. (NASDAQ:EBIX)
Number of Hedge Fund Holders: 11
Short % of Float (Jan 30, 2023): 24.18%
Ebix, Inc. (NASDAQ:EBIX) is an American software company that provides on-demand infrastructure software exchanges and e-commerce services to the insurance, financial, travel, and healthcare industries across the globe. At the end of Q4 2022, 11 hedge funds held stakes in Ebix, Inc. (NASDAQ:EBIX). This is compared to 17 hedge funds in the previous quarter.
On February 23, Craig-Hallum analyst Jeff Van Rhee slashed his price target on Ebix, Inc. (NASDAQ:EBIX) to $40 from $150 and maintained a Buy rating on the shares. Ebix, Inc. (NASDAQ:EBIX) is one of the most shorted stocks on Wall Street right now. As of January 30, 24.18% of the company’s float has been shorted.
As of December 31, D E Shaw is the top shareholder in Ebix, Inc. (NASDAQ:EBIX) and has a position worth $12.7 million in the company.
12. Kymera Therapeutics, Inc. (NASDAQ:KYMR)
Number of Hedge Fund Holders: 15
Short % of Float (Jan 30, 2023): 21.99%
Kymera Therapeutics, Inc. (NASDAQ:KYMR) is a clinical stage biopharmaceutical company that is focused on developing protein degrader therapeutics which utilize the body’s natural protein degradation system. On February 23, Kymera Therapeutics, Inc. (NASDAQ:KYMR) posted earnings for the fiscal fourth quarter of 2022. The company reported a loss per share of $0.59 and generated a revenue of $16.14 million, falling short of expectations by $4.52 million.
With a short interest of 21.99%, as of January 23, Kymera Therapeutics, Inc. (NASDAQ:KYMR) is one of the most shorted stocks on Wall Street right now.
At the close of the fourth quarter of 2022, Kymera Therapeutics, Inc. (NASDAQ:KYMR) was a part of 15 investors’ portfolios, down from 19 investors’ portfolios in the third quarter of 2022. As of December 31, Biotechnology Value Fund / BVF Inc is the most prominent shareholder in the company and has a stake worth $117.12 million.
11. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 16
Short % of Float (Jan 30, 2023): 39.87%
Upstart Holdings, Inc. (NASDAQ:UPST) is an American fintech company that operates an AI-powered cloud-based lending platform in the United States. As of January 30, 39.87% of the company’s float has been shorted and Upstart Holdings, Inc. (NASDAQ:UPST) is the eleventh most shorted stock on Wall Street right now.
On February 14, Upstart Holdings, Inc. (NASDAQ:UPST) reported earnings for the fourth quarter of fiscal 2022. The company’s revenue for the quarter fell by 51.81% year over year and amounted to $146.91 million. The company reported a loss per share of $0.25.
At the end of the fourth quarter of 2022, 16 hedge funds were long Upstart Holdings, Inc. (NASDAQ:UPST) and disclosed collective positions worth $16.2 million in the company. This is compared to 20 hedge funds in the previous quarter with stakes worth $81.4 million.
As of December 31, Coatue Management is the largest stockholder in Upstart Holdings, Inc. (NASDAQ:UPST) and has a position worth $11 million in the company.
10. Camping World Holdings, Inc. (NYSE:CWH)
Number of Hedge Fund Holders: 17
Short % of Float (Jan 30, 2023): 23.98%
Camping World Holdings, Inc. (NYSE:CWH) is an American automotive retail company. The company retails recreational vehicles and offers related products and services. The company has two divisions: Good Sam Services & Plans and RV & Outdoor Retail.
On February 23, BMO Capital lowered its price target on Camping World Holdings, Inc. (NYSE:CWH) to $26 from $30 and maintained a Market Perform rating on the shares.
Camping World Holdings, Inc. (NYSE:CWH) is ranked tenth among the most shorted stocks on Wall Street right now. As of January 30, 23.98% of the company’s float has been shorted.
Camping World Holdings, Inc. (NYSE:CWH) was held by 17 hedge funds at the end of Q4 2022. These hedge funds held collective positions worth $171.8 million in the company, down from $223.9 million in the previous quarter with 22 positions. The hedge fund sentiment for the stock is negative.
As of December 31, Abrams Capital Management is the most prominent investor in Camping World Holdings, Inc. (NYSE:CWH) and has a position worth $114 million in the company.
9. The Children’s Place, Inc. (NASDAQ:PLCE)
Number of Hedge Fund Holders: 17
Short % of Float (Jan 30, 2023): 25.68%
The Children’s Place, Inc. (NASDAQ:PLCE) is a children’s clothing store. The company has two business divisions: The Children’s Place U.S. and The Children’s Place International. At the end of Q4 2022, 17 hedge funds disclosed positions in The Children’s Place, Inc. (NASDAQ:PLCE). This is compared to 21 hedge funds in the third quarter of 2022.
With a short interest of 25.68%, as of January 30, The Children’s Place, Inc. (NASDAQ:PLCE) is one of the most shorted stocks on Wall Street right now. This February, Telsey Advisory analyst Dana Telsey downgraded the stock to Market Perform from Outperform and reiterated her $46 price target on the shares.
As of December 31, Invenomic Capital Management is the largest shareholder in The Children’s Place, Inc. (NASDAQ:PLCE) and has disclosed a position worth $8.76 million in the company.
8. Beam Therapeutics Inc. (NASDAQ:BEAM)
Number of Hedge Fund Holders: 18
Short % of Float (Jan 30, 2023): 20.28%
Beam Therapeutics Inc. (NASDAQ:BEAM) is an American biotechnology company focused on precision genetic medicines. On February 28, the company posted earnings for the fiscal fourth quarter of 2022. The company reported a loss per share of $0.54 and outperformed EPS estimates by $0.80. The company’s revenue for the quarter fell by 60.76% year over year and amounted to $20.04 million. With a short interest of 20.28%, as of January 30, Beam Therapeutics Inc. (NASDAQ:BEAM) is ranked high among the most shorted stocks on Wall Street right now.
Beam Therapeutics Inc. (NASDAQ:BEAM) was spotted on 18 investors’ portfolios at the end of Q4 2022. The total stakes of these funds amounted to $632.1 million. This is compared to 27 hedge funds in the preceding quarter with stakes worth $797.4 million.
As of December 31, Cathie Wood’s ARK Investment Management is the top stockholder in Beam Therapeutics Inc. (NASDAQ:BEAM) and has disclosed a position worth $321.21 million in the company.
7. Allogene Therapeutics, Inc. (NASDAQ:ALLO)
Number of Hedge Fund Holders: 20
Short % of Float (Jan 30, 2023): 38.14%
Allogene Therapeutics, Inc. (NASDAQ:ALLO) is a clinical stage immuno-oncology company. This March, Canaccord analyst John Newman lowered his price target on Allogene Therapeutics, Inc. (NASDAQ:ALLO) to $35 from $55 and reiterated a Buy rating on the shares.
Allogene Therapeutics, Inc. (NASDAQ:ALLO) is one of the most shorted stocks on Wall Street right now. As of January 30, 38.14% of the company’s float has been shorted.
At the end of Q4 2022, 20 hedge funds held stakes in Allogene Therapeutics, Inc. (NASDAQ:ALLO). The total value of these stakes amounted to $118.6 million, down from $190.9 million in the previous quarter with 28 positions. The hedge fund sentiment for the stock is negative.
As of December 31, EcoR1 Capital is the leading investor in Allogene Therapeutics, Inc. (NASDAQ:ALLO) and has a stake worth $28.23 million in the company.
6. Gossamer Bio, Inc. (NASDAQ:GOSS)
Number of Hedge Fund Holders: 22
Short % of Float (Jan 30, 2023): 30.96%
Gossamer Bio, Inc. (NASDAQ:GOSS) is an American clinical-stage biopharmaceutical company. The company is involved in the development and commercialization of therapeutics for immunology, inflammation, and oncology in the United States. At the close of the fourth quarter of 2022, 22 hedge funds were eager on Gossamer Bio, Inc. (NASDAQ:GOSS) and held stakes worth $50.6 million in the company. This is compared to 33 positions in the previous quarter with stakes worth $401.02 million.
On December 8, 2022, H.C. Wainwright analyst Patrick Trucchio slashed his price target on Gossamer Bio, Inc. (NASDAQ:GOSS) to $5 from $25 and maintained a Buy rating on the shares. With a short interest of 30.96%, as of January 30, Gossamer Bio, Inc. (NASDAQ:GOSS) is the sixth most shorted stock on Wall Street right now.
As of December 31, Hillhouse Capital Management is the largest shareholder in Gossamer Bio, Inc. (NASDAQ:GOSS) and has disclosed a position worth $10.79 million in the company.
Some of the most shorted stocks that are popular among elite money managers include Gossamer Bio, Inc. (NASDAQ:GOSS), Kohl’s Corporation (NYSE:KSS), CNX Resources Corporation (NYSE:CNX), and Carvana Co. (NYSE:CVNA).
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Disclosure: None. 15 Most Shorted Stocks Right Now on Wall Street is originally published on Insider Monkey.
