J C Penney Jumps To The Top Of The Short Seller List

FIS Astec Analytics has released its latest weekly list of the most popular stocks among short sellers.

This week’s list contains six stocks that have regularly appeared atop the short selling list throughout the year. Here’s a rundown of this week’s hottest stocks among short sellers.

Top Pick: J C Penney

Short sellers have not been impressed by J C Penney Company Inc JCP’s recently launched children’s clothing line, upping their short positions by 8 percent in the past week. With shares now trading consistently below $4, short sellers may see the writing on the wall for the once-dominant retailer.

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1. Snap

J C Penney jumped Snap Inc SNAP for the top spot on this week’s list, but short sellers certainly don’t seem to take Snap’s recent lock-up expiration as a sign to close out their positions. In the past two weeks, Snap selling volume has jumped 31 percent and 22 percent, and overall short interest is up 8 percent, according to FIS.

2. Applied Optoelectronics

Applied Optoelectronics Inc AAOI stock has been all over the map in 2017, and short sellers are likely contributing to the volatility. With shares now down 40 percent from their August peak, FIS says nearly 96 percent of available shares are currently being borrowed.

3. RH

After starting 2017 on quite a run, the RH RH short trade has paid off in the past month, with the stock down more than 34 percent. Short sellers see even more downside ahead, and more than 25 percent of available shares are still held by short sellers.

4. Under Armour

The athletic apparel group has had a dismal earnings season, but short sellers are betting Under Armour Inc UA UAA has even more pain ahead. Under Armour shares are now down nearly 60 percent in the past year, but over 94 percent of available shares remain borrowed.

5. Herbalife

Bill Ackman’s famous $1 billion short is once again back among the hottest short plays in the market. According to FIS, short sellers now hold 88 percent of Herbalife Ltd. HLF shares available to borrow.