At Extreme Investor Network, we specialize in providing valuable insights and expert analysis on the world of investing. Today, we’re diving into the intriguing world of short selling, where hedge funds and other investors bet against stocks in the hopes of profiting from a price decline.
While the market continues to reach new record highs, short sellers are still active in targeting certain stocks. Despite some pullback since the rise of meme stocks, the practice of short selling is alive and well. Short squeezes, where rising stock prices force short sellers to cover their positions by buying shares, can lead to a domino effect of buying pressure.
According to FactSet data, here are five stocks with market caps of at least $2 billion that had the highest short interest as a percentage of float at the end of May. These stocks include companies in commercial real estate like Arbor Realty Trust and Medical Properties Trust, as well as niche financial firms like Upstart and Trupanion. Speculative biotech company ImmunityBio is also on the list, showcasing the diverse range of industries being targeted by short sellers.
Additionally, two names worth noting are Comstock Resources and Madrigal Pharmaceuticals, which are outperforming the market this year. This strong performance could potentially lead to a short squeeze in the near future. It’s important to keep an eye on these stocks as their momentum continues.
While GameStop isn’t on the list with at least 25% short interest, it’s worth mentioning that the meme stock saw a short squeeze during its 2021 rally. Short seller Citron Research recently announced it exited its position against the stock, signaling a shifting landscape in the short selling arena.
At Extreme Investor Network, we offer unique insights and analysis to help investors navigate the complex world of short selling and beyond. Stay tuned for more expert advice and market updates to enhance your investing strategy.