In this article, we take a look at the 10 Best Cybersecurity Stocks to Buy According to Short Sellers.

On May 7, the International Monetary Fund (IMF) emphasized the growing risks to financial stability amid the potential of artificial intelligence (AI) to fuel cyberattacks. It explained that while AI is transforming how the financial system addresses vulnerabilities and responds to incidents, it is also amplifying cyber threats that can undermine financial stability when intruders’ offensive capabilities outpace defenses.

The IMF said financial systems depend on highly interconnected, shared digital infrastructure, including software, cloud services, and networks for payments and other data. It emphasized that advanced AI models can lessen the time and cost needed to identify and exploit vulnerabilities. This raises the likelihood of simultaneously discovering and targeting weaknesses in widely used systems.

The global organization cited Anthropic’s recent controlled release of its Claude Mythos Preview, an advanced AI model with exceptional cyber capabilities, as an example of how quickly risks are increasing. It further explained:

“Mythos could find and exploit vulnerabilities in every major operating system and web browser—even when used by non-experts. This foreshadows how fast‑moving, AI‑driven cyber risks could destabilize the financial system if not managed carefully, and why authorities must focus on building resilience through supervision and coordination—rather than treating these developments as purely technical or operational issues.”

“On the other hand, OpenAI’s specialized, restricted cyber version of GPT‑5.5 assumes vulnerabilities and attacks will grow, and emphasizes equipping defenders more quickly and at scale, under appropriate governance and trusted access models,” it added.

The IMF emphasized the need for a policy response that treats cybersecurity as a core financial stability issue, noting that existing measures must be expanded and sharpened amid increasingly sophisticated attacks. It urged policymakers to prioritize robust resilience standards, supervision focused on systemic transmission channels, and close public-private collaboration on threat intelligence and incident response.

Moreover, the IMF said the Mythos episode highlights governance challenges and emphasizes the need for strong global coordination. It added:

“Emerging and developing economies, which often have more severe resource constraints, may be disproportionately exposed to attackers targeting regions with weaker defenses. That’s why stronger international coordination, more information sharing, and expanded capacity development are critical to preserving global financial stability. As AI reshapes the cyber landscape, the central question for authorities is whether the financial system can continue to function under severe stress. Answering that question requires putting systemic risk—and the tools to manage it—at the center of the AI‑cyber conversation.”

As we consider this development, let’s take a look at the 10 Best Cybersecurity Stocks to Buy According to Short Sellers.

Our Methodology

To compile this list, we shortlisted cybersecurity companies using the Finviz screeners. Next, we listed the short percentage of float for all the companies. From this pool, we ranked the stocks based on their short float percentage, from highest to lowest. Additionally, we also included the number of hedge funds holding stakes in these companies as of the fourth quarter of 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Note: All pricing data is as of market close on May 25, 2026.

10. SailPoint, Inc. (NASDAQ:SAIL)

Short float: 21.30%

Number of Hedge Fund Holders: 26

SailPoint, Inc. (NASDAQ:SAIL) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 21, the company introduced a new SailPoint Claude Compliance API connector, which provides essential visibility and governance needed by Claude Enterprise organizations to secure access to and usage of AI platforms across the enterprise.

The company said the integration addresses the critical need for robust identity security over the expanding AI landscape as more companies adopt AI tools to accelerate business innovation. It added that the connector extends SailPoint’s enterprise-grade identity security to Anthropic’s Claude Enterprise, enabling organizations to confidently adopt AI while maintaining stringent security and compliance standards.

On May 20, Roth Capital initiated its coverage of SailPoint, assigning the stock a Buy rating and a $19 price target, according to a report by TheFly. The analyst emphasized that the company is well-positioned for long-term growth as it estimates the company’s addressable market at $55B versus a current run-rate of $1B in annual recurring revenue. Moreover, it described the company’s outlook as conservative.

SailPoint, Inc. (NASDAQ:SAIL) is a company that provides a comprehensive identity security platform for enterprises. Its solutions enable organizations to establish, control, and automate policies that help them define and maintain a robust security posture and achieve regulatory compliance.

9. Tenable Holdings, Inc. (NASDAQ:TENB)

Short float:13.19%

Number of Hedge Fund Holders: 40

Tenable Holdings, Inc. (NASDAQ:TENB) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 22, Needham raised its price target on Tenable to $30 from $26 while maintaining a Buy rating on the stock following the company’s Investor Day presentation on May 21, according to a report by TheFly.

The analyst highlighted the company’s 2029 target model, which assumes high single-digit to low double-digit year-on-year revenue growth alongside free cash flow margin expansion. Additionally, Needham also cited the company’s strides in expanding its portfolio as well as selling the vision of exposure management to customers.

Similarly, DA Davidson also raised its price target on Tenable to $25 from $22 and maintained a Neutral rating on the shares following the company’s Investor Day presentation. It highlighted the company’s Tenable One platform, noting that it provides customers with a holistic exposure management solution that helps prioritize and remediate exposures at machine speed.

During the company’s Investor Day presentation, Tenable launched the Tenable Open Partner Exchange Network (OPEN), an upgrade of its technology partner ecosystem, which is designed to help organizations unify security data, accelerate AI-driven workflows, and operationalize exposure management across their existing technology stack.

“As AI accelerates the speed and scale of cyber threats, security teams are struggling with fragmented tools, disconnected workflows, and growing operational complexity. Tenable OPEN extends the power of the Tenable One Exposure Management Platform through an open ecosystem of integrations, data exchange, and orchestration capabilities that help organizations reduce cyber risk faster,” Tenable said.

Tenable Holdings, Inc. (NASDAQ:TENB) offers an AI-powered exposure management platform designed to expose and close cybersecurity gaps that erode business value, reputation, and trust.