In this article, we will examine the 10 Most Shorted Stocks Right Now.
Short interest has become one of the most closely followed indicators in today’s market. It highlights where skepticism is concentrated, where investors are betting against prevailing optimism, and where price swings are often most pronounced. For investors, tracking the most shorted names is not simply about monitoring bearish positions but about identifying pressure points in market sentiment that can create both risks and opportunities.
Earnings remain the key driver for equities. In a CNBC interview on September 2, Stephanie Link, Chief Investment Strategist at Hightower Advisors, noted continued strength in the U.S. economy despite concerns over higher interest rates. She also noted low jobless claims, wage growth near 5%, and steady consumer spending supported by rising incomes and robust credit card data. Business investment also showed momentum, with core durable goods orders up 1.1% last month.
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This type of resilience has helped keep markets calm, but it has also encouraged investors to take more aggressive investment bets. On August 22, Bloomberg reported that hedge funds are shorting the CBOE Volatility Index (VIX) at levels last seen in 2022, betting that calm will continue. Chris Murphy, co-head of derivatives strategy at Susquehanna, warned that such concentrated trades could unwind quickly if conditions shift. Similar setups have caught investors off guard before, including in February 2025, when equity markets reversed on renewed trade concerns.
For equity investors, heavily shorted stocks can also become focal points for sudden price swings when sentiment shifts. In both cases, extreme positioning increases the risk of crowded trades unwinding, underscoring the importance of monitoring the most shorted names for assessing both downside risk and potential upside from short-covering rallies.
With that backdrop, let’s now turn to the 10 most shorted stocks right now.
Our Methodology
To compile our list of the 10 most shorted stocks, we began by screening for U.S.-listed companies with a market capitalization above $2 billion and short interest representing more than 25%–30% of the free float. From this universe, we selected the ten stocks with the highest short interest as a percentage of float and ranked them in ascending order of that ratio. We have also added the number of hedge fund holders for each stock, based on the hedge fund sentiment data as of Q2 2025 from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Note: All pricing data is as of market close on August 29, 2025.
10 Most Shorted Stocks Right Now
10. Arbor Realty Trust Inc. (NYSE:ABR)
Short Interest as % of Float: 27.5%
Market Cap: $2.5 Billion
Number of Hedge Fund Holders: 14
Arbor Realty Trust Inc. (NYSE:ABR) is one of the most shorted stocks right now. Arbor continues to face elevated delinquencies and the pressure of higher interest rates, which have slowed loan originations and weighed on earnings. These challenges remain at the core of short-seller concerns. They are also evident in the cautious consensus ratings, where 50% of analysts have a Sell rating, and only one-quarter recommend a Buy.
Among the positive analysts is Citizens JMP’s Steven Delaney, who reaffirmed an Outperform rating on Arbor Realty Trust Inc. (NYSE:ABR) on August 19. However, he lowered his price target to $13, down from $13.50 previously. While the broader market remains cautious on the stock, Delaney argued that the company is making an effort to improve its credit quality and non-performing loan book. He also notes that, as evidence of the success of its recent measures, the company is witnessing progress in its other lines of business.
In line with these efforts, Arbor Realty Trust Inc. (NYSE:ABR) closed a $1.05 billion commercial real estate mortgage loan securitization on August 12. This move was aimed at enhancing liquidity by freeing up credit lines and allowing reinvestment in new loans.
This deal highlights Arbor’s ability to manage risks and short-term liquidity. However, it does not fully address longer-term concerns regarding leverage and credit quality, particularly in a weakening commercial real estate market. Thus, Arbor Realty Trust Inc. (NYSE:ABR) still has considerable ground to cover.
Arbor Realty Trust Inc. (NYSE:ABR) is a real estate investment trust (REIT) that specializes in structured finance for the multifamily and commercial real estate sectors.
9. PureCycle Technologies Inc. (NASDAQ:PCT)
Short Interest as % of Float: 29.1%
Market Cap: $2.6 Billion
Number of Hedge Fund Holders: 32
PureCycle Technologies Inc. (NASDAQ:PCT) is one of the most shorted stocks right now. On August 27, Jeff Grampp, an analyst at Northland, initiated coverage of PureCycle Technologies Inc. (NASDAQ:PCT) with an Outperform rating and a price target of $16.
Grampp has a bullish view, believing the company is well-positioned to be a leader in the polypropylene recycling industry. He based his argument on PureCycle Technologies Inc.’s (NASDAQ:PCT) recent $300 million fundraising round, which the company plans to use to expedite its expansion.
In its second-quarter update on August 7, PureCycle Technologies Inc. (NASDAQ:PCT) highlighted that it is well-set to achieve 1.0 billion pounds of installed capacity and $600 million in EBITDA per year by 2030. Its efforts to operationalize the Thailand facility are on track, and it expects the facility to be operational by the third quarter of 2027. For its Antwerp plant in Belgium, the company is planning to bring the capacity online by the third quarter of 2028.
Following the update, TD Cowen analyst James Schumm had also maintained his bullish view with a Buy rating and increased his price target on PureCycle Technologies Inc. (NASDAQ:PCT) to $16 from $13. The analyst cited the freshly announced billion-pound capacity plan as the reason for the increased estimates and target. He believed that a surge in larger orders would drive rapid revenue growth for the company, leading to substantial value creation for investors.
PureCycle Technologies Inc. (NASDAQ:PCT) is a recycling and sustainability company that develops processes to convert waste polypropylene into high-quality recycled resin.
8. Lucid Group Inc. (NASDAQ:LCID)
Short Interest as % of Float: 29.2%
Market Cap: $6.1 Billion
Number of Hedge Fund Holders: 27
Lucid Group Inc. (NASDAQ:LCID) is one of the most shorted stocks right now. Lucid’s share price has halved over the last year and is down over 34% this year. The near-term headwinds in the electric vehicle (EV) industry have intensified in recent months, and the market is largely on the sidelines until growth picks up pace.
On August 29, Stifel analyst Stephen Gengaro reiterated his cautious view with a Hold rating, but lowered his price target to $2.10 from $3.00.
While Lucid Group Inc. (NASDAQ:LCID) reported modestly better-than-expected revenue for Q2 2025, its profitability was weaker than expected, which the analyst believes hints at the company’s inability to contain costs. Lucid CFO Taoufiq Boussaid’s plan to shore up profits partly rests on higher volumes, which should help the company spread its fixed costs.
However, the company’s recently provided outlook was not encouraging as well. Lucid Group Inc. (NASDAQ:LCID) has reduced its production outlook for 2025 to 18,000-20,000 vehicles, down from its initial target of 20,000 vehicles, which signals market volatility and softer demand for the overall electric vehicle industry, according to the analyst.
The EV industry is facing a range of headwinds, including the loss of consumer tax credits, the imposition of high tariffs on imports of auto parts, and the removal of emission fines for manufacturers of gasoline-powered vehicles.
That said, Gengaro praised Lucid Group Inc. (NASDAQ:LCID) for its excellent technology and products, especially the Air sedan and the Gravity SUV, which means that the analyst’s cautious view is driven more by near-term headwinds. He also pointed out that the company may need additional funding to fuel its growth over the coming years.
Lucid Group Inc. (NASDAQ:LCID) is an electric vehicle manufacturer specializing in luxury electric cars. The company is known for its high-performance vehicles with advanced battery technology.
7. NuScale Power Corporation (NYSE:SMR)
Short Interest as % of Float: 29.6%
Market Cap: $9.9 Billion
Number of Hedge Fund Holders: 30
NuScale Power Corporation (NYSE:SMR) is one of the top performers on our list of most shorted stocks, with a year-to-date price return of nearly 94% and a 326% gain over the past year.
However, such a strong rally has made part of the market cautious about further upside, despite a robust growth opportunity lying ahead of the company. One such analyst is Dimple Gosai of Bank of America Securities. On August 21, Dimple initiated coverage on NuScale Power Corporation (NYSE:SMR) with a Neutral rating and a price target of $36.
On the positive side, she believes that NuScale Power Corporation (NYSE: SMR) benefits from leveraging light-water reactor technology and Low-Enriched Uranium (LEU), which gives it a strategic advantage over competitors who use the less accessible High-Assay Low-Enriched Uranium (HALEU). HALEU refers to Uranium enriched to levels between 5% and 20%, compared to LEU, which is enriched up to 5%.
The company also appears to be in a sweet spot amid favorable policy changes and increasing demand for reliable power sources, which is primarily driven by data centers and artificial intelligence applications.
Despite this advantage, Gosai chose to start coverage with a cautious stance because she believes the company is still in its early commercialization phase and doesn’t yet have binding contracts to solidify its long-term case. Moreover, the growth prospects are largely reflected in the current valuation; thus, the upside potential appears limited for her.
NuScale Power Corporation (NYSE:SMR) is an energy technology company developing small modular nuclear reactors (SMRs) designed to provide safe, scalable, and carbon-free power.
6. TeraWulf Inc. (NASDAQ:WULF)
Short Interest as % of Float: 30.1%
Market Cap: $3.9 Billion
Number of Hedge Fund Holders: 26
TeraWulf Inc. (NASDAQ:WULF) is one of the most shorted stocks right now. While TeraWulf is diversifying its business, a significant exposure to the bitcoin mining business makes it vulnerable to the volatility in cryptocurrency markets. That said, the company has seen a strong performance over the last year, and so far this year, it has continued to perform well (+67% YTD).
On August 22, Rosenblatt analyst Chris Brendler raised his price target on TeraWulf Inc. (NASDAQ:WULF) to $12 from $10.50 and reiterated a Buy rating. Brendler pointed to a new partnership with Fuidstack in high-performance computing that expands TeraWulf’s reach beyond Bitcoin mining, as well as the positive cross-read from a related investment by Google as a strategic technology backer. He believes these developments materially strengthen the company’s earnings outlook and justify a higher valuation multiple, positioning the stock for further upside.
TeraWulf Inc. (NASDAQ:WULF) announced the aforesaid Fluidstack agreement on August 14, which represents more than 200 MW of contracted hyperscale colocation capacity at TeraWulf’s Lake Mariner campus, with a projected value of $3.7 billion over the initial 10-year term. The deal is structured to generate approximately $370 million in predictable annual revenue, with NOI margins of nearly 85%. Google is backing $1.8 billion of Fluidstack’s obligations, underscoring the credibility of the arrangement and reducing financing risk.
TeraWulf Inc. (NASDAQ:WULF) is a U.S.-based digital asset and computing infrastructure company. It operates Bitcoin mining facilities mainly powered by zero-carbon energy and is expanding into high-performance computing services.
5. Liquidia Corp. (NASDAQ:LQDA)
Short Interest as % of Float: 30.6%
Market Cap: $2.4 Billion
Number of Hedge Fund Holders: 43
Liquidia Corp. (NASDAQ:LQDA) is one of the most shorted stocks right now. On August 15, Jefferies analyst Amy Li initiated coverage on Liquidia Technologies Inc. (NASDAQ:LQDA) with a Buy rating and a $43 price target. Liquidia Technologies is a subsidiary and operating arm of Liquidia Corporation.
Li pointed to strong early traction for the company’s lead product, Yutrepia, which is gaining prescriptions and patients at a pace ahead of expectations. She projects Yutrepia could generate $108 million in revenue by FY 2025, well above consensus estimates.
The analyst highlighted that Yutrepia stands out because it reaches effective doses more quickly without increasing the chance of coughing, a clear edge over other treatments for pulmonary hypertension and interstitial lung disease.
While ongoing patent litigation creates uncertainty, the analyst believes that positive feedback from physicians and encouraging clinical data support its prospects for broader market adoption. She expects these dynamics to drive profitability by the end of 2025, which supports the bullish view on Liquidia Corp. (NASDAQ:LQDA).
Liquidia Corp. (NASDAQ:LQDA) is a biopharmaceutical company focused on developing and commercializing therapies for rare pulmonary diseases.
4. Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL)
Short Interest as % of Float: 34.6%
Market Cap: $9.8 Billion
Number of Hedge Fund Holders: 47
Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is one of the most shorted stocks right now. On August 25, TD Cowen analyst Ritu Baral raised her price target on Madrigal Pharmaceuticals (NASDAQ:MDGL) to $554 from $390, while maintaining a Buy rating.
The revision by the analyst followed the European Commission’s approval of Rezdiffra, making it the first and only authorized therapy in the European Union for metabolic dysfunction-associated steatohepatitis (MASH). MASH is a serious liver condition that can progress to cirrhosis, liver failure, liver cancer, and premature mortality.
During its approval announcement on August 19, Bill Sibold, Chief Executive Officer of Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL), stated:
“This approval of Rezdiffra marks a historic breakthrough for patients in Europe living with MASH, a serious and progressive liver disease. MASH is the fastest-growing indication for liver transplantation in Europe, but until now, had no approved treatment. The European labelling for Rezdiffra will set an important precedent for the entire field, with no biopsy required to qualify for treatment with Rezdiffra and a clear focus on a distinct MASH patient population with high unmet need: those with moderate to advanced fibrosis (F2-F3).”
Baral incorporated the EU approval into her discounted cash flow model, adding Europe as a new revenue driver. As the regulatory risks have decreased after approval, she also lowered the discount rate applied to Madrigal Pharmaceuticals Inc.’s (NASDAQ:MDGL) valuation, resulting in a higher price target. Rezdiffra’s first-mover advantage in MASH is expected to support a strong commercial rollout and reinforce Madrigal’s long-term growth profile.
Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is a clinical-stage biopharmaceutical company focused on developing therapies for serious liver diseases.
3. Medical Properties Trust Inc. (NYSE:MPW)
Short Interest as % of Float: 34.7%
Market Cap: $2.7 Billion
Number of Hedge Fund Holders: 25
Medical Properties Trust Inc. (NYSE:MPW) is one of the most shorted stocks right now. On August 28, Medical Properties Trust Inc. (NYSE:MPW) announced a new lease agreement with NOR Healthcare Systems following its winning bid for Prospect Medical Group’s California operations. The deal encompasses six facilities under a master lease with an initial annualized rent of $45 million, which is broadly in line with Prospect’s previously scheduled 2025 obligations. Rent will be partially deferred during the first year, with repayment spread over the entire lease term.
Medical Properties Trust Inc. (NYSE:MPW) has also committed up to $60 million in seismic upgrades, which will be added to the lease base and generate additional rent at standard yields.
Management highlighted that the arrangement strengthens cash flow visibility, contributing to the company’s target of exceeding $1 billion in pro rata annualized rent by the end of 2026. They also believe that strong interest from multiple operators in acquiring these assets underscores their operating resilience and history of profitability.
Medical Properties Trust Inc. (NYSE:MPW) is a real estate investment trust specializing in owning and leasing hospitals and healthcare facilities across the U.S. and internationally.
2. Rocket Companies Inc. (NYSE:RKT)
Short Interest as % of Float: 44.9%
Market Cap: $37.4 Billion
Number of Hedge Fund Holders: 56
Rocket Companies Inc. (NYSE:RKT) is one of the most shorted stocks right now. While the recent acquisitions of Mr. Cooper Group Inc. (NASDAQ:COOP) and Redfin are seen as a strategic fit, the 58% rally in 2025 has left the valuation relatively fair.
On this note, analysts from Keefe, Bruyette & Woods (KBW) reiterated a Market Perform rating on August 27, with a $15 price target on Rocket Companies (NYSE:RKT) following the Government-Sponsored Enterprises’ (GSEs) approval of its acquisition of COOP. As part of the approval, regulators imposed a 20% cap on GSE servicing market share.
The combined Rocket–COOP entity currently holds about a 13% share of owned GSE servicing, which suggests further room for expansion within the cap. However, when we factor in subservicing, the combined share could approach or exceed the threshold, potentially requiring adjustments to Rocket Companies Inc.’s (NYSE:RKT) servicing mix. The analysts noted that any such changes are unlikely to affect earnings meaningfully, as subservicing is less profitable than owned servicing.
Overall, the analysts see limited earnings impact from the regulatory conditions, though they view the market share cap as a constraint on long-term growth flexibility.
Rocket Companies Inc. (NYSE:RKT) is a U.S.-based fintech company best known for Rocket Mortgage, one of the nation’s largest mortgage lenders. The company also operates in real estate and financial services, with a focus on streamlining consumer lending through its digital platforms.
1. Avis Budget Group Inc. (NASDAQ:CAR)
Short Interest as % of Float: 54.7%
Market Cap: $5.6 Billion
Number of Hedge Fund Holders: 31
Avis Budget Group Inc. (NASDAQ:CAR) is one of the most shorted stocks right now. On August 20, Bank of America analyst Federico Merendi downgraded Avis Budget Group (NASDAQ:CAR) to Underperform from Buy and lowered his price target to $113 from $120. Merendi argued that neither the fundamentals nor the broader travel environment supports the stock’s recent outperformance, particularly after the rally seen in June.
The analyst cited softening U.S. demand and weaker pricing trends as headwinds for Avis Budget Group Inc.’s (NASDAQ:CAR) earnings through late 2025 and 2026. A recent BofA consumer survey indicated reduced intentions to increase travel spending, pointing to a more challenging backdrop for rental volumes and pricing. Tariffs could further weigh on demand in the second half of the year.
The analyst acknowledged that new initiatives, such as the Avis First premium program and a fleet management partnership with Waymo, could strengthen the business. However, he expects these to take time before making a material contribution to earnings. Vehicle depreciation could provide some relief, but not to the levels seen during the pandemic when resale values spiked.
Reflecting these dynamics, the analyst cut his 2025 and 2026 EBITDA forecasts for Avis Budget Group Inc. (NASDAQ:CAR) and reduced valuation assumptions.
Avis Budget Group Inc. (NASDAQ:CAR) operates the Avis, Budget, and Zipcar brands, offering car rental and mobility services to both leisure and business customers.
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