5 Most Shorted Stocks to Watch

1. Conn’s, Inc. (NASDAQ:CONN)

Float Shorted: 66.38%

Number of Hedge Fund Holders as of December 31: 10

Conn’s, Inc. (NASDAQ:CONN) is a Woodlands, Texas-based store chain operator of electronic appliances, furniture, mattresses, and other consumer durables.

Conn’s, Inc. (NASDAQ:CONN) has been facing persistent near-term headwinds in the form of higher product and freight costs, which have impacted margins. Furthermore, the rise in interest rate has also restricted the ability of customers to buy on credit, reducing spending on consumer durables.

Conn’s, Inc. (NASDAQ:CONN) posted an EPS Normalized Actual of $0.33 for Q1 2022, missing the consensus estimate by $0.13. The company also missed the revenue estimates by $6.9 million. Conn’s, Inc. (NASDAQ:CONN) has developed a new growth strategy to drive expansion and reduce the company’s dependence on subsidizing the retail segment with the credit segment. However, analysts remain skeptical about Conn’s, Inc.’s (NASDAQ:CONN) ability to execute the strategy successfully.

The number of hedge funds invested in Conn’s, Inc. (NASDAQ:CONN) decreased from 15 in Q3 2021 to 10 in the fourth quarter of 2021.

Raging Capital Management shared its insights on Conn’s, Inc. (NASDAQ:CONN) in its Q3 2021 investor letter. Here’s what the investment management firm said:

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