Potential short squeeze plays gained steam in 2021, with new retail traders looking for the next huge move.
A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back the shares they initially borrowed at a higher price.
A squeeze can occur when short sellers are forced into buying to cover their position, which can cause shares to move up higher on many occasions.
Fintel Data: Data from Fintel, which requires a subscription, provides a look at several of the top shorted stocks and data on how likely a short squeeze is to occur.
Here’s a look at Fintel’s top five short squeeze candidates for the week of May 2.
Aterian: No stranger to the short squeeze leaderboard, consumer products company Aterian Inc ATER tops the list once again. Fintel shows 36.9% of the float short, up from last week’s 34.8%. The cost to borrow shares sits at 124.9%, in line with last week’s total.
Harbor Custom Development: Real estate development company Harbor Custom Development Inc HCDI ranks second on the short squeeze leaderboard for the second straight week. Fintel shows 23.9% of the total float short and a cost to borrow of 65.9%. The stock saw 26.6% of the float short last week and a cost to borrow of 37.6%.
Related Link: 5 Short Squeeze Candidates To Watch: Aterian And Newegg Remain In Top Two Positions
Zymeworks: Biopharmaceutical company Zymeworks Inc ZYME ranks third for the week on the short squeeze leaderboard. Fintel data shows 15.9% of the total float short and a cost to borrow of 54.6%. The company was subject to a $10.50 buyout offer last week, which sent shares higher.
Lixte Biotechnology Holdings: Biotechnology company Lixte Biotech Holdings Inc LIXT shot up from the $1 level to nearly $5 to hit new 52-week highs last week. The company makes the short squeeze leaderboard with 23.7% of its total float short and an elevated cost to borrow of 94.7%. Short interest in the company was up 11,000% in the latest monthly report.
Veru: Shares of biopharmaceutical company Veru Inc VERU have gone from $4.50 to over $17 in the last month. Shares hit a 52-week high of $17.50 in mid-April. The company joins the Fintel short squeeze leaderboard with 21% of the float short. The company has a lower cost to borrow of 12.1%, which could be the key figure to watch to see if a squeeze is more likely to happen. Short interest in the stock was up 236% in the last monthly report and could come in higher when the new figures are released given the recent sharp increase in the share price.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.