In this piece, we’ll take a look at the 5 Most Shorted Stocks Hedge Funds Are Buying. For more such companies, go to 15 Most Shorted Stocks Hedge Funds Are Buying.
5. Fate Therapeutics, Inc. (NASDAQ:FATE)
Short % of Float (Nov 29, 2022): 29.20%
Number of Hedge Fund Holders: 28
Fate Therapeutics, Inc. (NASDAQ:FATE) is a clinical-stage biopharmaceutical company that develops cell therapies for the treatment of cancer and other diseases. The company’s main focus is on developing therapies that use cells derived from human pluripotent stem cells, which are cells that can develop into any cell type in the body. The company’s lead product candidate, FT516, is a natural killer (NK) cell therapy that is being developed for the treatment of acute myeloid leukemia (AML) and other hematologic cancers.
Robyn Karnauskas, an analyst at Truist, has a price of $46 on Fate Therapeutics, Inc. (NASDAQ:FATE) and keeps a Buy rating on the stock. The analyst’s bullish view of the company is because of Fate Therapeutics, Inc. (NASDAQ:FATE)’s strong iPSC-derived platform. On the contrary, Andrea Tan, an analyst at Goldman Sachs, recently started covering Fate Therapeutics, Inc. (NASDAQ:FATE) with a sell rating and a price target of $10. The analyst has a bearish view of the company as he believes that the company’s datapoints are still early-stage and the industry is currently crowded.
As per Insider Monkey’s database, 28 hedge funds remained bullish on Fate Therapeutics, Inc. (NASDAQ:FATE) at the end of the third quarter. Redmile Group had the biggest stake in the company at the end of the third quarter.
4. Wayfair Inc. (NYSE:W)
Short % of Float (Nov 29, 2022): 38.45%
Number of Hedge Fund Holders: 31
Headquartered in Boston, Massachusetts., Wayfair Inc. (NYSE:W) is an e-commerce company that operates a website and mobile app that offers a wide range of home goods, including furniture, home decor, and home improvement products. Wayfair Inc. (NYSE:W) has a large selection of products available on its website, with more than 18 million items offered by over 10,000 suppliers.
Ygal Arounian, an analyst at Citi, started covering Wayfair Inc. (NYSE:W) on December 13, 2022, with a Buy rating and a price target of $50. The analyst is bullish on the company as he sees a good risk/reward at current levels. While Adrienne Yih, an analyst at Barclays, keeps an Underweight rating on the company with a price target of $34. The analyst keeps a bearish view on the company, given the consistent decline in active customers.
According to Insider Monkey’s database, 31 hedge funds held stakes in Wayfair Inc. (NYSE:W) at the end of the third quarter. Spruce House Investment Management remained the leading stakeholder in the company at the end of Q3 2022.
3. Voya Financial, Inc. (NYSE:VOYA)
Short % of Float (Nov 29, 2022): 23.85%
Number of Hedge Fund Holders: 31
Voya Financial, Inc. (NYSE:VOYA) is a financial services company that provides a range of retirement, investment, and insurance products and services to individuals and businesses. Voya Financial, Inc. (NYSE:VOYA) operates through a number of business segments, including retirement, investment management, and employee benefits.
Elyse Greenspan, an analyst at Wells Fargo, keeps an Overweight rating on Voya Financial, Inc. (NYSE:VOYA) with a price rate of $86. The analyst’s bullish view is based on the company’s expected 12%-17% growth of EPS in 2023. However, Voya Financial, Inc. (NYSE:VOYA) is currently trading at a forward P/E of 15.37 compared to the sector median of 10.77, which indicates that the company may be overvalued.
31 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. Samlyn Capital had the biggest long position in the company at the end of Q3 2022.
2. Gossamer Bio, Inc. (NASDAQ:GOSS)
Short % of Float (Nov 29, 2022): 26.22%
Number of Hedge Fund Holders: 33
Founded in 2015, Gossamer Bio, Inc. (NASDAQ:GOSS) is a clinical-stage biopharmaceutical company that develops and commercializes therapies for the treatment of chronic and acute diseases. Gossamer Bio, Inc. (NASDAQ:GOSS) has a number of drug candidates in its pipeline, including therapies for respiratory diseases, immuno-oncology, and fibrosis.
Geoff Meacham, an analyst at BofA, keeps a price target of $7 on Gossamer Bio, Inc. (NASDAQ:GOSS) with a Buy rating on the stock. The analyst keeps a bullish view as he sees a positive risk/reward given that the shares are trading below $3 per share.
While Brian Cheng, an analyst at JPMorgan, recently lowered his rating on the stock to Underweight from Neutral without placing a price target. The analyst has a bearish view of the company because Gossamer Bio, Inc. (NASDAQ:GOSS)’s phase 3 plan to include FCIII and FCII with a higher risk threshold is confusing, and he remains cautious about the company’s outlook in 2023.
As per Insider Monkey’s database, 33 hedge funds remained bullish on Gossamer Bio, Inc. (NASDAQ:GOSS) at the end of Q3 2022. Hillhouse Capital Management came out to be the biggest holder of the company’s shares at the end of the quarter.
1. Carvana Co. (NYSE:CVNA)
Short % of Float (Nov 29, 2022): 68.86%
Number of Hedge Fund Holders: 43
Carvana Co. (NYSE:CVNA) operates an e-commerce platform for buying and selling used cars. Carvana Co. (NYSE:CVNA) is known for its innovative business model, which includes the use of automated car vending machines.
Colin Sebastian, an analyst at Baird, keeps a price target of $30 on Carvana Co. (NYSE:CVNA) with an Outperform rating on the stock. The analyst has a bullish view due to the company’s significant long-term upside, given its massive TAM. On the other hand, Taylor Conrad, an analyst at Argus, downgraded his rating on the stock to Sell from Hold. The analyst has a bearish view of the company as he believes that with a debt-to-capital ratio of 95%, Carvana Co. (NYSE:CVNA) is likewise highly leveraged, and the stock is overvalued at its current price.
At the end of Q3 2022, 43 hedge funds in Insider Monkey’s database were long Carvana Co. (NYSE:CVNA). CAS Investment Partners remained the leading stakeholder of the company at the end of Q3 2022.
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