In this article, we discuss the 5 stocks that short sellers are currently targeting. If you want to take a look at some more stocks attracting short-sellers and the latest market situation, you can go to Short Sellers Are Targeting These 10 Stocks.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Float Shorted: 7.32%
Number of Hedge Fund Holders: 47
Rivian Automotive, Inc. (NASDAQ:RIVN) is an American automotive technology company. As of February 28, the company has a short interest change of 34.21 million. Argonaut Capital’s Barry Norris is betting against Rivian Automotive, Inc. (NASDAQ:RIVN), who stated that the company is “on a ridiculous valuation.” Barry believes Rivian Automotive, Inc. (NASDAQ:RIVN) doesn’t have the first-mover advantage in the industry. Moreover, Amazon announced its decision to buy electric vehicles from rival firm Stellantis, driving the stock price of Rivian Automotive, Inc. (NASDAQ:RIVN) below its IPO price in January 2022. At the end of Q4 2021, 47 hedge funds owned a stake in the company.
Longleaf Partners Fund shared its stance on Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q4 2021 investor letter. Here’s what the fund said:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Rivian is a prime example.”
4. Blink Charging Co. (NASDAQ:BLNK)
Float Shorted: 37.84%
Number of Hedge Fund Holders: 11
Blink Charging Co. (NASDAQ:BLNK) is a Miami, Florida-based owner, operator, and provider of residential and commercial electric vehicle (EV) charging equipment and EV charging stations across the US. Short sellers have not been able to reap gains in the stock yet as Blink Charging Co. (NASDAQ:BLNK) has only fallen by 0.3% since the start of 2022. Wolverine Trading LLC is betting against the company, as revealed in the 13F filings to the Securities and Exchange Commission.
On March 15, Stephen Gengaro at Stifel lowered the target price on Blink Charging Co. (NASDAQ:BLNK) from $39 to $30 and reiterated a Hold rating. Although the analyst increased the top-line estimates for Blink Charging Co. (NASDAQ:BLNK), he has reduced his EBITDA forecasts as he anticipates the company to experience significant growth in revenue coupled with negative EBITDA and free cash flow in the short term.
3. KE Holdings Inc. (NYSE:BEKE)
Float Shorted: 3.59%
Number of Hedge Fund Holders: 34
KE Holdings Inc. is China’s leading online and offline platform for real estate transactions and services. Muddy Waters Research is short KE Holdings as it suspects the firm of systemic fraud. The investment firm believes that KE Holdings Inc.’s (NYSE:BEKE) income figures for the second and third quarters are inflated by 77% to 96%, the overall turnover of new houses (GTV) is inflated by 126%, while the stock house turnover is overstated by 33%. The Board of Directors of KE Holdings Inc. (NYSE:BEKE) has authorized an independent audit committee to undertake an internal assessment of the principal claims in the Muddy Waters report. Of the 924 hedge funds in Insider Monkey’s database, 34 reported owning a stake in KE Holdings Inc. (NYSE:BEKE) at the end of Q4 2021, up from 26 in the preceding quarter.
In its Q3 2021 investor letter, Tao Value discussed its stance on KE Holdings Inc. (NYSE:BEKE). Here’s what the investment management firm said:
“As witnessed in the past quarter, the government intervention in Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited KE holdings (ticker: BEKE), for high potential regulatory risk and the passing of the visionary founder & CEO Zuo Hui (who was a core tenet of our original thesis).”
2. Gogo Inc. (NASDAQ:GOGO)
Float Shorted: 39.87%
Number of Hedge Fund Holders: 20
Gogo Inc. (NASDAQ:GOGO) is a Broomfield, Colorado-based in-flight broadband internet service provider that was founded in 1991. Short sellers are worried by the increase in the stock price as it has risen by nearly 33% since the start of 2022. Short sellers may be forced to cover up their positions, which could create a short squeeze, further boosting the stock price of Gogo Inc. (NASDAQ:GOGO). Don Wilson’s DRW Securities LLC is amongst the institutional investors shorting Gogo Inc. (NASDAQ:GOGO).
The Street’s outlook can be a sign of worry for short-sellers as Scott Searle at Roth Capital thinks that Gogo Inc. (NASDAQ:GOGO) stock is underappreciated by investors as it operates in a duopoly-like status, underpenetrated market along with strong financial characteristics. As of Q4 2021, 20 hedge funds held a stake in Gogo Inc. (NASDAQ:GOGO), up from 19 in the preceding quarter.
Ewing Morris Investment Partners mentioned Gogo Inc. (NASDAQ:GOGO) in its Q4 2021 investor letter. Here’s what the firm said:
“The core strategy remains to focus on compounders. As a reminder, a Compounder is a business that has…
– A durable competitive advantage
– Attractive profit margins
– Double-digit growth potential
– Strong management teamAnd these continue to make up the bulk of our portfolio. Let’s take Gogo as an example. Gogo has a near-monopoly providing internet on private jets in North America. The business has fantastic economics and is consistently growing at double-digit rates. And the stock trades at 12.5x cash earnings. It’s very unusual to find such a good business trading at such a low price. These are the kinds of compounders that we own. Most of the time, when a value investor has an exciting idea, it fits one of two profiles. The first, is what we call time arbitrage. This is a situation where a good business is facing a short-term, fixable issue. And if you just have enough patience, you will be rewarded. But that’s not the case at Gogo. The business is firing on all cylinders…” (Click here to see the full text)
1. Enphase Energy Inc (NASDAQ:ENPH)
Float Shorted: 2.72%
Number of Hedge Fund Holders: 50
Enphase Energy Inc (NASDAQ:ENPH) develops software-driven home energy solutions that include solar power and web-based monitoring. The company currently has a short interest ratio of 1.
Renaud Saleur, a former trader at Soros Fund Management, is betting against solar technology companies like Enphase Energy Inc (NASDAQ:ENPH). Since its last report, Enphase Energy Inc’s (NASDAQ:ENPH) short percent of float has increased by 3.7%. The corporation just disclosed that 4.41 million shares had been sold short, accounting for 3.36% of all ordinary shares available for trade. As of Q4 2021, 50 hedge funds reported owning a stake in Enphase Energy Inc (NASDAQ:ENPH).
ClearBridge Investments discussed its viewpoint on Enphase Energy Inc (NASDAQ:ENPH) in its Q2 2021 investor letter. Here’s what the firm said:
“Also in the solar space, we initiated a position in Enphase Energy (classified in the IT sector), which designs and manufactures microinverters for residential and small commercial solar photovoltaic (PV) systems. Enphase was the first company to commercialize microinverters for residential and small commercial solar PV systems. A microinverter, a type of MLPE, is a small inverter placed directly on the back of each solar module, as opposed to the traditional system of one string inverter on the side of the building.”
You can also take a peek at the 10 Penny Stocks with Upcoming Growth Catalysts and 9 Best Clean Energy Stocks To Buy Today.
