In this article, we discuss the 5 best short squeeze stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Short Squeeze Stocks To Buy Now.
5. Nikola Corporation (NASDAQ:NKLA)
Number of Hedge Fund Holders: 12
Short Interest: 35.91%
Nikola Corporation (NASDAQ:NKLA) is placed fifth on our list of 15 best short squeeze stocks to buy now. The firm engages in the development and integration of transportation and energy solutions. It operates from Arizona.
On September 9, investment advisory JPMorgan maintained a Neutral rating on Nikola Corporation (NASDAQ:NKLA) stock but lowered the price target to $12 from $21, noting that demand for EV trucks may hold back in the near-term due to range and payload problems.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based firm Inclusive Capital is a leading shareholder in Nikola Corporation (NASDAQ:NKLA) with 10 million shares worth more than $185 million.
In its Q4 2020 investor letter, Bireme Capital, an asset management firm, highlighted a few stocks and Nikola Corporation (NASDAQ:NKLA) was one of them. Here is what the fund said:
“Nikola Corporation (NKLA) is a poor-man’s facsimile of Tesla. Even the name is a blatant ripo: both are named aer the inventor Nikola Tesla. NKLA is a pre-revenue company founded in 2014 that has yet to bring a product to market, despite the promotion of a dizzying array of concepts:
Nikola Badger: pickup with both fuel-cell and electric variants
Nikola One: fuel-cell commercial semi-truck
Nikola Two: fuel-cell commercial semi-truck
Nikola Tre: electric commercial semi-truck
Nikola NZT: electric four-wheel drive utility vehicle
Nikola Reckless: electric military grade o-highway vehicle
Nikola WAV: electric watersports vehicle
As far as we can tell from their latest investor communications, only the Nikola Tre Commercial semitruck is still in development.
As far as we can tell from their latest investor communications, only the Nikola Tre Commercial semitruck is still in development. NKLA’s history is full of deception and vaporware. They showed a video of the Nikola One in motion; they later admitted that it didn’t work and was just rolling down a hill. NKA’s founder Trevor Milton resigned in disgrace aer Hindenburg Research published a report calling NKLA an “intricate fraud.” NKLA is currently under investigation by both the SEC and DoJ. Partnerships with GM, Republic Services and BP have been canceled. Nevertheless, the company sports an $8b market cap, because “electric vehicles.” Though pretenders are particularly ubiquitous in the bubbly EV industry, pretenders are to be found in many other industries as well.”
4. Workhorse Group Inc. (NASDAQ:WKHS)
Number of Hedge Fund Holders: 13
Short Interest: 35.86%
Workhorse Group Inc. (NASDAQ:WKHS) is an Ohio-based technology company that makes and sells battery electric vehicles. It is ranked fourth on our list of 15 best short squeeze stocks to buy now.
On September 23, investment advisory DA Davidson maintained a Neutral rating on Workhorse Group Inc. (NASDAQ:WKHS) stock but lowered the price target to $7.5 from $10, noting with concern a product recall and suspension of production by the firm.
At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $60 million in Workhorse Group Inc. (NASDAQ: WKHS), down from 16 in the preceding quarter worth $96 million.
3. Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT)
Number of Hedge Fund Holders: 13
Short Interest: 27.28%
Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) is a New York-based biopharmaceutical firm focusing on the development of treatment for liver diseases. It is placed third on our list of 15 best short squeeze stocks to buy now.
On August 20, investment advisory Goldman Sachs downgraded Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) stock to Sell from Neutral and lowered the price target to $10 from $17, noting the pressures of commercialization on a new drug of the firm.
Out of the hedge funds being tracked by Insider Monkey, Illinois-based investment firm Deerfield Management is a leading shareholder in Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) with 57 million shares worth more than $51 million.
2. Big 5 Sporting Goods Corporation (NASDAQ:BGFV)
Number of Hedge Fund Holders: 19
Short Interest: 43.80%
Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is ranked second on our list of 15 best short squeeze stocks to buy now. The firm retails sporting goods and athletic apparel. It operates from California.
On August 4, investment advisory Lake Street maintained a Buy rating on Big 5 Sporting Goods Corporation (NASDAQ:BGFV) stock and raised the price target to $31 from $26, appreciating the strong quarterly earnings of the firm.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $43 million in Big 5 Sporting Goods Corporation (NASDAQ:BGFV), up from 14 in the preceding quarter worth $27 million.
1. Katapult Holdings, Inc. (NASDAQ:KPLT)
Number of Hedge Fund Holders: 33
Short Interest: 15.71%
Katapult Holdings, Inc. (NASDAQ:KPLT) is placed first on our list of 15 best short squeeze stocks to buy now. The firm operates as a financial technology firm and is headquartered in Texas.
On August 12, investment advisory Loop Capital maintained a Buy rating on Katapult Holdings, Inc. (NASDAQ:KPLT) stock but lowered the price target to $7 from $12, noting that the top line growth of the firm was slowing substantially.
At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $283 million in Katapult Holdings, Inc. (NASDAQ:KPLT).
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
