In this article we discuss top 5 underperforming stocks targeted by short sellers. If you want to read our detailed analysis of the short-selling investing strategy and see some of the stocks with highest short interest, read 10 Underperforming Stocks Targeted By Short Sellers.
5. Akebia Therapeutics Inc (NASDAQ: AKBA)
Short % of Float (Jan 14, 2021): 22.93%
Short % of Shares Outstanding (Jan 14, 2021): 19.94%
Akebia is a Massachusetts-based company that is working to treat kidney disease complications. The company has a late stage oral hypoxia-inducible factor prolyl hydroxylase inhibitor (HIF-PHI), Vadadustat, for the treatment of anemia due to CKD. Vadadustat has not been approved by the FDA or any other regulatory authority for use outside of Japan.
Akebia shares are down about 59% in the last 12 months. A total of 18 hedge funds in Insider Monkey database held stakes in Akebia as of the end of the third quarter, down from 25 funds a quarter earlier.
4. Cyclacel Pharmaceuticals Inc (NASDAQ: CYCC)
Short % of Float (Jan 14, 2021): 20.17%
Short % of Shares Outstanding (Jan 14, 2021): 19.99%
New Jersey-based Cyclacel claims to be developing “mechanism-targeted drugs” to treat cancer, diabetes and HIV. The company was founded in 1996 by David Lane, Merlin Ventures and Cancer Research Campaign Technology with the University of Dundee and the University of Glasgow.
Cyclacel shares are down 46% over the last 12 months. Hal Mintz’s Sabby Capital owns 125,578 shares of the company, worth $458,000.
3. Intercept Pharmaceuticals Inc (NASDAQ: ICPT)
Short % of Float (Jan 14, 2021): 34.23%
Short % of Shares Outstanding (Jan 14, 2021): 21.59%
Intercept Pharmaceuticals Inc (NASDAQ: ICPT) develops novel synthetic bile acid analogs to treat chronic liver diseases like primary biliary cirrhosis, non-alcoholic fatty liver disease, cirrhosis, portal hypertension and bile acid diarrhea. The company’s primary product is 6-ethyl-chenodeoxycholic acid or INT-747, marketed as Ocaliva.
The stock is down more than 62% in the last 12 months. As of the end of the September quarter, 20 hedge funds tracked by Insider Monkey held stakes in the company.
2. Invesco Mortgage Capital Inc (NYSE: IVR)
Short % of Float (Jan 14, 2021): 26.25%
Short % of Shares Outstanding (Jan 14, 2021): 22.33%
Invesco is a Georgia-based REIT that primarily deals in commercial mortgage-backed securities and other mortgage-related assets. The company also invests in residential mortgage-backed securities. Its previous name was Invesco Agency Securities Inc. which was changed in 2008. The stock is down 76% over the last 12 months. In December 2020, the company declared a quarterly dividend of $0.08 per share, a 60% increase from prior dividend of $0.05.
A total of 9 hedge funds out of 816 tracked by Insider Monkey held stakes in Invesco as of the end of the third quarter.
1. Seritage Growth Properties Class A (NYSE: SRG)
Short % of Float (As of Jan. 14): 59.85%
Short % of Shares Outstanding: 23.04%
Seritage Growth shares are down 52% over the last 12 months. The company is a self-administered REIT with 183 wholly-owned properties and 28 JVs, totaling to about 28.5 million square feet of space across 45 states in the U.S. and Puerto Rico. In November 2020, the company appointed Amanda Lombard as chief financial officer, replacing the outgoing CFO Brian Dickman. In December, the company said its CEO Benjamin W. Schall is resigning from his role.
The stock is down 52% over the last 12 months.
Please also see 10 Cheap Stocks Billionaire Lee Cooperman Is Buying and 10 Extreme Dividend Stocks With Huge Upside.
Follow Insider Monkey on Twitter
Disclosure: None.
