Short Selling

10 Stocks facing extensive short selling

Ten company logos were displayed on a grey background in the photograph.

Shorting a stock means to bet that the stock price will go down. You borrow a stock from a broker, sell it, hoping the stock price will go down, repurchase at a lower price and return it, bagging the profit from the price difference.

This year, the shorting activity has increased considerably, with the stock market taking a downturn against rising inflation mainly due to soaring energy prices. The S&P 500  has declined approximately by 21% year-to-date. 

Below are ten of the most shorted stocks in the US market, listed from highest to the lowest short interest rate:

Avaya Holdings Corp (AVYA: US)

Headquartered in North Carolina, The tech company is currently valued at around $138.1 million. 

Avaya has a short interest rate standing at almost 56.6% with the utilization rate at 100%. Meanwhile, the stock price is down by almost 93.32% year-to-date with the current value standing at $1.38. 

On August 9, 2022, Avaya disclosed the results of its fiscal Q3 for 2022, ending on June 30: the quarter’s revenues reached almost $577 million, almost 19.41% lower than Q2 2022’s revenue. The GAAP diluted loss per share was $16.27, higher than $0.02 in the previous quarter. 

Bed Bath & Beyond Inc (BBB: US)

Bed Bath & Beyond Inc is an American retail chain company with a present  Market Cap of $487.1 million.

Presently, the retail stock’s short interest rate is at 55.94%, with the utilization rate at 100%. BBBY’s stock price has declined by 61.28% Year-to-date. Currently valued at $5.87.

Earlier this year, the founder and former CEO of Chewy Inc, Ryan Cohen disclosed his stake in BBBY stock. He later disclosed in Form 144 filing, selling the stock on Aug 16 when shares were valued at $20.65. According to Bed Bath & Beyond’s Q2 2022 results, net sales declined by 27.61% year-on-year while the net loss reached nearly $366 million.

Fisker Inc (FSR: US)

Fisker is a California-based EV manufacturer with a Market Cap of almost $1.37 billion based on class A shares

As of yet, short interest in the stock is reaching almost 51.14% along with a utilization rate of 100%. On the other hand, Fisker’s stock price declined by 55.00% year-to-date and has a current stock price of $7.52. 

On August 3, the company’s quarterly earnings for Q2 2022 disclosed net losses of almost $106.0 million, a whopping 129% higher year-on-year largely due to increased R&D expenses in the period .

Beyond Meat Inc (BYND: US)

Beyond Meat is a California based plant-based meat manufacturing company with a Market Cap of $961.4 million. 

Since its IPO, the company has been undergoing shorting, with the current short interest rate at almost 45.61%. The utilization rate of BYND is at a full 100% while the stock price fell by nearly 76.66% year-to-date. At present, the stock is valued at $15.14.

On August 04, Beyond Meat unveiled its Q2 2022 earnings report disclosing net revenues of almost $147.0 million in comparison to the value of $149.4 million from the previous year’s Q2. 

Upstart Holdings (UPST: US)

Upstart is a California-based AI company currently with a Market Cap of almost $1.69 billion.

In the present climate, UPST’s short interest rate is at 43.67% with a utilization rate of 100%. The stock’s value declined by 84.39% year-to-date while currently standing at $22.58 price per share. 

in its Q2 2022 results on August 8, GAAP net income losses were $29.9m lower by nearly 19.88% year-on-year. The same day Upstart’s stock closed at a price of $32.27, a 17.73% rise compared to the previous day’s opening price. 

Cassava Science Inc (SAVA: US)

Cassava is a Texas-based company working in the biopharmaceutical sector and possesses a current Market Cap of $1.73 billion. 

The stock’s short interest rate is at a noticeable 37.35%, with the utilization rate at 100%.  The stock price declined by about 11.66% year-to-date, currently trading at $42.35.

In its recent Q2 2022 results, the company reported a net loss of almost $19.3 million, a significantly 277% higher year-on-year. Cassava was reportedly investigated this year on the allegations that it had manipulated the results of its recent experiment for Alzheimer's treatment. Later in August, it was disclosed that no supporting evidence to the allegations have been found. 

Groupon Inc (GRPN: US)

Groupon is an online retailer based in Illinois, with a current Market Cap of almost $264.6 million. 

Currently, short interest at Groupon is at around 29.04%, while the utilization rate is at a full 100%. GRPN’s stock price is down by almost 65.86% year-to-date with a stock currently priced at $9.16.

On August 8, 2022, Groupon disclosed its financial report for 2022’s second quarter: total revenues were lower by nearly 42.39% year-on-year while net loss had risen to almost $90.3 million from a value of $3.13 million year-to-year. A headline released the same day said that Groupon was planning on cutting down nearly 500 jobs in order to cut costs. Since then, GRPN’s share price has fallen sharply,  from $13.87 to current price of $8.69.

Danimer Scientific Inc (DNMR: US)

Danimer is a biopolymer manufacturer company with a current Market Cap of approximately $305 million. 

At present, DNMR stock’s short interest rate is at almost 28.30% with the utilization rate at 100%. The stock declined by almost 67.61% year-to-date. Currently, the material stock is valued at $2.87

Disclosed on August 9, 2022, Danimer’s Q2 2022 results showed that the company had fetched revenues of nearly $12,703,000 in the quarter; a value almost 12.22% lower year-on-year. In addition, multiple insiders at Danimer have been filing Form 144s this year including Chief Marketing Officer, Scott C. Tuten.

ElectraMeccanica Vehicles Corp (SOLO: US)

ElectraMeccanica Vehicles is an electric vehicle company with a Market Cap of almost $81.4 million. 

Presently, SOLO stock’s short interest rate is approximately 22.34%, with the utilization rate at 96.72%. The stock’s value is down by 51.01% year-to-date, trading currently at a price of $1.21.

Disclosed on August 11, 2022, ElectraMeccanica’s earnings for Q2 2022 missed EPS estimates despite its Q2 revenues being over $1.5 million; this is the fourth quarter in a row that the company’s earnings have failed to meet the expected numbers. Despite this, the EV stock was listed as being a star for a possible short squeeze. 

Lightwave Logic Inc (LWLG: US)

Lightwave is a technological platform company, based in Colorado. The company has a current Market Cap of $818 million. 

As of September 28, 2022, the company has a short interest rate of 18.45%. LWLG stock utilization rate is currently at 91.6% while the stock price has descended by 54.95% year-to-date, currently at $7.33.

In early June this year, Investment manager, Kerrisdale Capital, disclosed that it was shorting LWLG shares, referring to the company as “perpetually stuck in ‘development stage’ status for more than thirty years”. Lightwave called the disclosure and subsequent report misleading. Lightwave had a decline in net loss by 16.23% in Q2 2022 year-on-year.

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