15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers

5. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 85

Short Interest:  3.34%

Constellation Energy Corporation operates as a seller and producer of energy products and services. The company operates through Midwest, ERCOT, Mid-Atlantic, New York, and Other Power Regions.

Citi upgraded Constellation Energy last month from Hold to Buy and assigned it a price target of $232. According to the firm, with the recent share price dip, the stock’s risk-reward ratio seems more appealing. Citi analyst Ryan Levine also mentioned some factors driving his upgrade, including natural gas builds in Texas, downward protection from power price fluctuations, co-location deals, and a favorable stock issuance by Calpine.

On the back of the increasing demand for energy from AI applications, the company reiterated its full-year adjusted earnings guidance. As per the guidance, the firm anticipates EPS between $8.90 to $9.60. The company’s planned acquisition of Calpine is expected to be completed by the end of this year. It is also redirecting its focus to potential data center projects linked to the US electrical grid.

CEO Joseph Dominguez highlighted in the earnings conference call:

“On-grid sales are increasingly attractive to us and to our customers, but we still believe that behind-the-meter configurations will make sense for some customers.”