5 Best High Short Interest Stocks To Buy Now

n this piece, we will take a look at the five best high short interest stocks to buy now. If you want to learn more about short selling and some historic trades, then check out 11 Best High Short Interest Stocks To Buy Now.

5. Fate Therapeutics, Inc. (NASDAQ:FATE)

Number of Hedge Fund Investors In Q2 2023: 23

Short Interest Percentage: 28.45%

Fate Therapeutics, Inc. (NASDAQ:FATE) develops treatments for liver diseases, tumors, and immune system disorders. Its fate hasn’t been great this year as the shares have tanked by 73% on the market after the firm terminated a deal with JNJ’s biotechnology subsidiary.

Despite this, 23 out of the 910 hedge funds part of Insider Monkey’s database still have hope for Fate Therapeutics, Inc. (NASDAQ:FATE) since they had continued to hold the shares in Q2 2023. Out of these, the firm’s largest investor is Jeremy Green’s Redmile Group since it owns 13.1 million shares that are worth $62 million.

4. C3.ai, Inc. (NYSE:AI)

Number of Hedge Fund Investors In Q2 2023: 23

Short Interest Percentage: 30.64%

C3.ai, Inc. (NYSE:AI) is a software company that enables companies to deploy artificial intelligence platforms. Even as AI has been the buzzword in the market these days, a large portion of its shares are sold short as it looks like the short investors believe that the 182% year to date gains are unwarranted.

During this year’s second quarter, 23 out of the 910 hedge funds polled by Insider Monkey had bought a stake in C3.ai, Inc. (NYSE:AI). Philippe Laffont’s Coatue Management is the company’s biggest shareholder in our database courtesy of a $53.7 million stake.

3. Franchise Group, Inc. (NASDAQ:FRG)

Number of Hedge Fund Investors In Q2 2023: 27

Short Interest Percentage: 32.29%

Franchise Group, Inc. (NASDAQ:FRG) is a discretionary stock that sells health supplements. Despite high inflation, its shares have done rather well on the market since they have gained 17% this year. Analysts have rated the stock as Buy on average, but recent coverage has downgraded the shares to Market Perform from Outperform.

Insider Monkey scoured through 910 hedge fund portfolios for their June quarter of 2023 investments and discovered that 27 had invested in the company. Franchise Group, Inc. (NASDAQ:FRG)’s biggest hedge fund stakeholder is Mathew Hallbower’s Pentwater Capital Management through an investment of $51.5 million.

2. Wayfair Inc. (NYSE:W)

Number of Hedge Fund Investors In Q2 2023: 37

Short Interest Percentage: 28.62%

Wayfair Inc. (NYSE:W) is an electronic commerce company that sells home furnishing and associated products. The stock has been on a tear this year, having gained 99% year to date and boosted by a massive EPS beat for the second quarter earnings.

As of June 2023, 37 out of the 910 hedge funds surveyed by Insider Monkey had held Wayfair Inc. (NYSE:W)’s shares. Out of these, the firm’s largest shareholder is Zachary Sternberg and Benjamin Stein’s Spruce House Investment Management since it owns 3.6 million shares that are worth $237 million.

1. Carvana Co. (NYSE:CVNA)

Number of Hedge Fund Investors In Q2 2023: 41

Short Interest Percentage: 37.33%

Carvana Co. (NYSE:CVNA) provides a platform that enables people to buy and sell cars. It is one of the rare companies in the world with car vending machines, and the latest addition to this portfolio came to Miami in August.

41 out of the 910 hedge funds part of Insider Monkey’s Q1 2023 database had bought a stake in the retailer. Carvana Co. (NYSE:CVNA)’s biggest hedge fund investor is Zachary Sternberg and Benjamin Stein’s Spruce House Investment Management since it owns $259 million worth of shares.

Disclosure: None.  You can also take a look at 12 Best Short Squeeze Stocks to Buy Now and 15 Worst Performing Healthcare Stocks in 2023.

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