Short Sellers Betting Against These 6 U.S. Listed Stocks

SunGard's Astec Analytics provides intraday short-selling market data via securities lending analytics. In a recent note sent to customers, the firm shared a “roundup of some of the hottest stocks from a securities lending perspective.”

Below is a look at the top stocks in the Americas (from a security lending perspective), according to SunGard's Karl Loomes.

Ambarella

The firm’s top pick in the region for this week is Ambarella, after management said it expects to see chip shipments related to the wearable technologies decline in the third quarter. The news triggered a selloff in both Amabrella and GoPro (the former is a main supplier to the latter).

“Looking at the borrowing figures, our data hints at not only a similarly bearish view from short sellers, but perhaps that they have been taking this view for more than a month – borrowing volumes up about 117 percent since the end of July,” the report explained.

Related Link: Short Opportunity? Morgan Stanley Discusses One Of SaaS's "Most Expensive" Stocks

SolarCity

SolarCity continued to be in the spotlight this week, as activist investor Elon Musk acquired $5 million in its stock at the end of August and research firm Oppenheimer assumed coverage of the shares with an Outperform rating.

Since Musk’s purchase, the stock has been rising, “though the borrowing data hints at the first turnaround towards a more bullish view for short sellers just last week – volumes falling 12 percent,” according to the report.

Chesapeake

Third in line is Chesapeake Energy Corporation, as “concerns surrounding the oil and gas markets” linger, “while news that it has reworked a number of expensive gas transportation contracts with pipeline company Williams, helped bolster its shares in the cash market.”

The short-selling side seems to have acquired a similar sentiment. Data from Astec Analytics suggest some “mild covering” took place during the week – with borrowing volumes declining 6 percent.

Three More Ideas

Three other stocks in Astec’s short-interest list are:

• Peabody Energy Corporation BTU
• MannKind Corporation MNKD
• Cliffs Natural Resources Inc CLF