This article presents an overview of the 5 Most Shorted Stocks in 2024. For a detailed overview of such stocks read our article, 12 Most Shorted Stocks in 2024.
5. Arbor Realty Trust Inc. (NYSE:ABR)
Float Shorted: 40.49%
New York-based REIT Arbor Realty Trust Inc. (NYSE:ABR) is one of the most shorted stocks in 2024. So far this year the stock is down 13%. However, in February, Arbor Realty Trust Inc. (NYSE:ABR) posted solid earnings beating estimates both on EPS and revenue. Its 13% dividend yield also makes it an attractive income play for many investors.
4. Children’s Place Inc (NASDAQ:PLCE)
Float Shorted: 57.10%
New Jersey-based apparel company Children’s Place Inc (NASDAQ:PLCE) is down 63% year to date through April 8.
In February, the stock jumped after Children’s Place Inc (NASDAQ:PLCE) secured a $78.6 million interest-free financing from its majority shareholder Mithaq Capital.
Choice Equities made the following comment about The Children’s Place, Inc. (NASDAQ:PLCE) in its Q3 2023 investor letter:
“Other core holdings continue to trade at attractive valuations. The Children’s Place, Inc. (NASDAQ:PLCE) looks set to generate nearly half its market cap in cash this year and is trading at a mid-20s free cash flow yield on sustainable cash flow levels.”
3. Imperial Petroleum Inc (NASDAQ:IMPP)
Float Shorted: 64.94%
Greece-based energy company Imperial Petroleum Inc (NASDAQ:IMPP) is one of the most shorted stocks in 2024. However, short sellers are taking it on the chin here since the stock is up 34% year to date.
As of the end of the fourth quarter of 2023, five hedge funds tracked by Insider Monkey had stakes in Imperial Petroleum Inc (NASDAQ:IMPP).
2. B Riley Financial Inc (NASDAQ:RILY)
Float Shorted: 76.28%
B Riley Financial Inc (NASDAQ:RILY) is in the news since it’s been facing delays filing its 10-K. B Riley Financial Inc (NASDAQ:RILY) shares jumped after B Riley Financial Inc (NASDAQ:RILY) said it reached an agreement with its lenders to extend the deadline for delivering its 2023 audited financial statements.
White Brook Capital stated the following regarding B. Riley Financial, Inc. (NASDAQ:RILY) in its fourth quarter 2023 investor letter:
“Finally, we continue to hold B. Riley Financial, Inc. (NASDAQ:RILY). B. Riley was a significant detractor from performance during 2023 as short-selling arguments were very publicly made throughout the year. The first short selling thesis questioned their deposit quality (they don’t take deposits) and the wisdom of their investment book (they’ve mostly worked out very well). They’ve more recently moved to allegations of fraud, questioning the veracity of Riley’s financial statements and the integrity of people the Firm has done business with without evidence that the company itself has committed wrongdoing. While I used to short stocks for a living, and there are short sellers I believe do great work and warrant a sell first, ask questions later philosophy, I believe this group’s analysis is mistaken and, in some cases, confused. I assign a low probability to the short sellers’ best arguments becoming true. However, even if they are, given the current share price, I believe the shares would still represent a compelling opportunity over time. Today, given the price of its publicly traded equity and debt, very high returns can be achieved by the company just by shrinking its principal investment business by letting outstanding loans to customers mature and paying down debt or buying back stock with the proceeds. They can win by doing nothing. Additionally, their base capital markets business, where they take minimal risk, is entering a period of enhanced potential opportunity as hundreds of billions of dollars of debt in Russell 2000 companies becomes due, providing Riley’s investment bank the opportunity to help companies arrange mergers and acquisitions or place equity, and firms trade. I like the risk-reward in RILY shares and look forward to a return measured in multiples of its current value.”
1. SunPower Corporation (NASDAQ:SPWR)
Float Shorted: 83.05%
Solar technology company SunPower Corporation (NASDAQ:SPWR) is one of the most shorted stocks in 2024, with about 80% of its float shorted. On April 5, Citi analysts gave a Sell rating for SunPower Corporation (NASDAQ:SPWR).
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