In this article, we discuss the 5 stocks that short sellers were right about. If you want to read our detailed analysis of these stocks, go directly to Short Sellers Were Right About These 10 Stocks.
5. Shift Technologies, Inc. (NASDAQ:SFT)
Number of Hedge Fund Holders: 12
Float Shorted: 36%
Decline in Share Price Over Past Six Months: 78%
Shift Technologies, Inc. (NASDAQ:SFT) owns and runs an ecommerce platform for used cars. Hedge funds have been selling the stock in recent months. At the end of the fourth quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $33 million in Shift Technologies, Inc. (NASDAQ:SFT), compared to 14 in the previous quarter worth $71 million.
In December, JPMorgan analyst Rajat Gupta had downgraded Shift Technologies, Inc. (NASDAQ:SFT) stock to Neutral from Overweight without a price target, noting that “prolonged labor and capacity constraints” were the main influences behind the downgrade.
4. Cassava Sciences, Inc. (NASDAQ:SAVA)
Number of Hedge Fund Holders: 7
Float Shorted: 37%
Decline in Share Price Over Past Six Months: 67%
Cassava Sciences, Inc. (NASDAQ:SAVA) is a clinical-stage biotech firm. The stock has been hit in recent months after allegations that the company manipulated trial results of an Alzheimer’s drug named simufilam. The firm was involved in an SEC probe as well.
Top hedge funds continue to hold large stakes in Cassava Sciences, Inc. (NASDAQ:SAVA). Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Cassava Sciences, Inc. (NASDAQ:SAVA) with 1 million shares worth more than $46 million.
3. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 11
Float Shorted: 40%
Decline in Share Price Over Past Six Months: 31%
Blink Charging Co. (NASDAQ:BLNK) provides electric vehicle charging equipment. The hedge fund sentiment around the stock is largely positive. At the end of the fourth quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $8.8 million in Blink Charging Co. (NASDAQ:BLNK), compared to 6 in the previous quarter worth $4.3 million.
On February 22, Needham analyst Vikram Bagri lowered the price target on Blink Charging Co. (NASDAQ:BLNK) stock to $29 from $41 but kept a Buy rating, underlining that slower long-term anticipated growth and higher than previously assumed cost of equity were the main reasons behind the target decrease.
2. Cortexyme, Inc. (NASDAQ:CRTX)
Number of Hedge Fund Holders: 11
Float Shorted: 42%
Decline in Share Price Over Past Six Months: 95%
Cortexyme, Inc. (NASDAQ:CRTX) is a clinical-stage biopharma firm. On January 28, Canaccord analyst Sumant Kulkarni downgraded the stock to Hold from Buy and lowered the price target to $75 from $112, citing “uncertainty based on the clinical hold of its COR388 for mild to moderate Alzheimer’s disease” as the primary reason behind the bearish outlook.
Elite hedge funds continue to back Cortexyme, Inc. (NASDAQ:CRTX). Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Cortexyme, Inc. (NASDAQ:CRTX) with 566,681 shares worth more than $7.1 million.
1. Allbirds, Inc. (NASDAQ:BIRD)
Number of Hedge Fund Holders: 10
Float Shorted: 50%
Decline in Share Price Over Past Two Months: 47%
Allbirds, Inc. (NASDAQ:BIRD) makes and sells footwear and apparel products. At the end of the fourth quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $19 million in Allbirds, Inc. (NASDAQ:BIRD).
On January 24, JPMorgan analyst Matthew Boss lowered the price target on Allbirds, Inc. (NASDAQ:BIRD) stock to $17 from $21 and kept a Neutral rating on the shares, noting that exiting the pandemic could prove more challenging to firms like Allbirds than entering it given “rising wages, inflationary raw material and input cost pressures”.
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
