In this article, we will be taking a look at the 5 most shorted stocks in 2022. To read our detailed analysis of these stocks and the strategy of shorting a stock, you can go directly to see the 10 Most Shorted Stocks in 2022.
5. MicroStrategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 18
MicroStrategy Incorporated (NASDAQ:MSTR) is an information technology company offering enterprise analytics software and services. The company is based in Tysons Corner, Virginia.
On August 3, Joseph Vafi at Canaccord reiterated a Buy rating on MicroStrategy Incorporated (NASDAQ:MSTR) shares. The analyst also placed a $372 price target on the stock.
This August, MicroStrategy Incorporated’s (NASDAQ:MSTR) short interest was 36.5%. Previously in June, 37.7% of the company’s total float had been shorted.
Out of 895 hedge funds tracked in the second quarter, 18 hedge funds were long MicroStrategy Incorporated (NASDAQ:MSTR). Their total stake value was $104.6 million.
Investment management company Bireme Capital mentioned MicroStrategy Incorporated (NASDAQ:MSTR) in its second quarter 2022 investor letter. Here’s what it said:
“We also remain short MicroStrategy, a middling business analytics software company that turned itself into a gigantic levered bet on Bitcoin at the height of the hype cycle – losing over a billion dollars in the process. Now, the company will need all the cash flow from the business just to pay off the interest payments on the enormous debt load, leaving no earnings for equity holders. Despite shares down over 60% for the year, the company continues to trade at a material premium to the value of its assets. For more detail on our thesis, please see our blog post here, as well as the Forbes and Fortune write-ups that feature our short position.”
4. Warby Parker Inc. (NASDAQ:WRBY)
Number of Hedge Fund Holders: 20
Warby Parker Inc. (NASDAQ:WRBY) is a consumer discretionary company offering eyewear products. The company offers eye exams and vision tests as well.
An Overweight rating was placed on Warby Parker Inc. (NASDAQ:WRBY) shares on July 22, by analyst Edward Yruma at Piper Sandler. The analyst also placed a $20 price target on the stock.
Warby Parker Inc.’s (NASDAQ:WRBY) short interest stood at 72.8% as of this September. The company’s share short value was $250.7 million.
Warby Parker Inc. (NASDAQ:WRBY) was found among the 13F holdings of 20 hedge funds in the second quarter, and 18 hedge funds in the previous quarter. Their total stake values were $400 million and $1.2 billion, respectively.
Baron Funds, an asset management firm, mentioned Warby Parker Inc. (NASDAQ:WRBY) in its second quarter 2022 investor letter. Here’s what it said:
“Health care related company Warby Parker Inc. (NYSE:WRBY) is responsible for about a quarter of the relative shortfall in the period. Shares of eyewear brand Warby Parker were down for the period held due to difficult market conditions for newly public companies as well as weaker-than-expected quarterly results owing to heightened COVID-related disruptions early in the year.”
3. Continental Resources, Inc. (NYSE:CLR)
Number of Hedge Fund Holders: 29
On August 2, Paul Cheng at Scotiabank placed a Sector Perform rating on Continental Resources, Inc. (NYSE:CLR) shares. The analyst also placed an $80 price target on the stock.
As of August 31, over 2.7 million of Continental Resources, Inc.’s (NYSE:CLR) shares make up its short volume. About 2% of the company’s float was shorted in August
There were 29 hedge funds long Continental Resources, Inc. (NYSE:CLR) in the second quarter, with a total stake value of $412.9 million.
Smead Capital Management, an investment management company, mentioned Continental Resources, Inc. (NYSE:CLR) in its second quarter 2022 investor letter. Here’s what it said:
“For the quarter, our best-performing stocks were Continental Resources, Inc. (NYSE:CLR), Merck (MRK) and Occidental Petroleum (OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list. Merck’s defensive characteristics and good news on earnings/growth didn’t shock us. We argued one year ago that Merck was historically cheap relative to the indexes as compared to the last 20 years.”
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturing company. It is based in Austin, Texas.
Deutsche Bank’s Emmanuel Rosner has a Buy rating on Tesla, Inc. (NASDAQ:TSLA) shares as of September 16. The analyst also placed a $400 price target on the stock.
Tesla, Inc.’s (NASDAQ:TSLA) short interest throughout August was 2.9%. Until this year, the company was infamously referred to as the most shorted stock in the world, based on the total value of its stock position.
Our hedge fund data shows 72 hedge funds long Tesla, Inc. (NASDAQ:TSLA) in the second quarter, and 80 hedge funds long the stock in the previous quarter. Their total stake values were $7.2 billion and $11.2 billion, respectively.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is an information technology company and is one of the Big Tech names in the US. The company is mostly known for its smartphones and laptops under the iPhone and MacBook names.
Bernstein analyst Toni Sacconaghi holds a Market Perform rating on Apple Inc. (NASDAQ:AAPL) shares, alongside a $170 price target.
The short interest percentage for Apple Inc. (NASDAQ:AAPL) as of this August was 0.67%. This September, the company surpassed Tesla, Inc. (NASDAQ:TSLA) as the most shorted US stock, with its $18.4 billion short interest, compared to Tesla’s $17.4 billion short interest.
Apple Inc. (NASDAQ:AAPL) had 128 hedge funds long its stock in the second quarter, with a total stake value of $1.4 billion.
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