In this article, we discuss the 10 best high short interest stocks to buy now.
Stocks with high short interest have dominated the headlines in the finance world for a good part of this year. In January, the GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings, Inc. (NYSE: AMC) short squeeze pitted retail investors against hedge funds in a battle for dominance that still seems to be ongoing. Last month, retail investors, who had until then enjoyed the upper hand in this saga, were hit as meme stocks – popular among retail investors without probable business-related causes – registered their worst crash in months.
Stocks with high short interest, like Arcimoto, Inc. (NASDAQ: FUV), PubMatic, Inc. (NASDAQ: PUBM), and Beam Global (NASDAQ: BEEM), among others that are discussed in detail below, are often the subject of short squeezes. For context into what these are and examples of the biggest ones in history, go through this piece. In the past few months, short squeezes have resulted in billions of dollars in losses to hedge funds, even leading to the closure of some funds, while returning handsome profits to retail investors who initiated them.
According to a report by IHS Market Research, at the beginning of this year, when the GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings, Inc. (NYSE: AMC) short squeeze was at peak value, the most-shorted companies on the market in terms of short interest outperformed the least-shorted companies by a factor of close to 24% month-to-date, highlighting the rewards that shorted stocks can offer for smart investors who can accurately assess shorted equities and plan accordingly.
The London-based business intelligence firm also revealed that this performance from shorted stocks was the best ever over a period of thirty days since data started being kept, beating the 21% and 15% month-to-date outperformance against least-shorted companies in April 2009 and April 2020 respectively. There is little doubt that high short interest equities have played a huge role in shaping market dynamics this year.
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The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best high short interest stocks to buy now. These were ranked keeping in mind the float shorted. Hedge fund sentiment was also included as a classifier. In addition, special importance was assigned to analyst ratings and business fundamentals of each company.
Best High Short Interest Stocks to Buy Now
10. Cricut, Inc. (NASDAQ: CRCT)
Number of Hedge Fund Holders: 12
Float Shorted: 34.2%
Cricut, Inc. (NASDAQ: CRCT) is placed tenth on our list of 10 best high short interest stocks to buy now. The stock has returned 27% to investors over the past three months. The company markets a platform that enables users to turn ideas into professional goods. The firm has a market cap of over $7 billion and posted more than $950 million in revenue last year. In earnings results for the first quarter, posted on May 13, the firm reported a revenue of $323 million, up 125% year-on-year and beating estimates by close to $30 million. .
On May 14, investment advisory Barclays maintained an Overweight rating on Cricut, Inc. (NASDAQ: CRCT) stock and raised the price target to $28 from $26, appreciating the quarterly earnings of the firm and backing it to continue on a growth trajectory.
At the end of the first quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $452 million in Cricut, Inc. (NASDAQ: CRCT).
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Arcimoto, Inc. (NASDAQ: FUV), PubMatic, Inc. (NASDAQ: PUBM), and Beam Global (NASDAQ: BEEM), Cricut, Inc. (NASDAQ: CRCT) is one of the best high short interest stocks to buy now.
9. Esperion Therapeutics, Inc. (NASDAQ: ESPR)
Number of Hedge Fund Holders: 17
Float Shorted: 34.3%
Esperion Therapeutics, Inc. (NASDAQ: ESPR) is a Michigan-based pharmaceutical company. It is ranked ninth on our list of 10 best high short interest stocks to buy now. The company is developing medicines for the treatment of elevated low-density lipoprotein cholesterol in people across the world. Some of the leading drug candidates of the firm include NEXLIZET and NEXLETOL, tablets for the treatment of atherosclerotic cardiovascular disease. The firm was founded in 2008 and has a market cap of close to $450 million.
On April 26, investment advisory Credit Suisse initiated coverage of Esperion Therapeutics, Inc. (NASDAQ: ESPR) stock with an Outperform rating and a price target of $45. Judah Frommer, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, Australia-based investment firm Platinum Asset Management is a leading shareholder in Esperion Therapeutics, Inc. (NASDAQ: ESPR) with 1.6 million shares worth more than $44 million.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Arcimoto, Inc. (NASDAQ: FUV), PubMatic, Inc. (NASDAQ: PUBM), and Beam Global (NASDAQ: BEEM), Esperion Therapeutics, Inc. (NASDAQ: ESPR) is one of the best high short interest stocks to buy now.
8. Blink Charging Co. (NASDAQ: BLNK)
Number of Hedge Fund Holders: 12
Float Shorted: 35.3%
Blink Charging Co. (NASDAQ: BLNK) stock has returned 211% to investors over the past twelve months. It is placed eighth on our list of 10 best high short interest stocks to buy now. The company makes and sells electric vehicle charging equipment and is based in Florida. On July 8, the firm announced that the European subsidiary of the firm, named Blue Corner, had entered into an agreement in Belgium to sell and operate EV charging stations at KU Leuven campuses in the country under a four-year sales and 10-year service contract.
On May 11, investment advisory Needham assumed coverage of Blink Charging Co. (NASDAQ: BLNK) stock with a Buy rating and a price target of $39, underlining that the firm had an early mover advantage in the EV charging space.
At the end of the first quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $40 million in Blink Charging Co. (NASDAQ: BLNK), down from 11 in the previous quarter worth $22 million.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Arcimoto, Inc. (NASDAQ: FUV), PubMatic, Inc. (NASDAQ: PUBM), and Beam Global (NASDAQ: BEEM), Blink Charging Co. (NASDAQ: BLNK) is one of the best high short interest stocks to buy now.
7. Workhorse Group Inc. (NASDAQ: WKHS)
Number of Hedge Fund Holders: 16
Float Shorted: 35.8%
Workhorse Group Inc. (NASDAQ: WKHS) is ranked seventh on our list of 10 best high short interest stocks to buy now. The company’s shares have offered investors returns exceeding 8% over the course of the past five days. The firm is based in Ohio and markets battery-electric vehicles and aircraft. It has a market cap of close to $1.4 billion. The firm also develops and sells telematics performance monitoring systems that operate in real time through a cloud and enable commercial fleet operators to manage energy and routes efficiently.
On April 15, investment advisory B Riley initiated coverage of Workhorse Group Inc. (NASDAQ: WKHS) stock with a Buy rating and a price target of $20, noting the firm was positioned to gain early footing with key customers as it ramps up production and sales.
At the end of the first quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $96.6 million in Workhorse Group Inc. (NASDAQ: WKHS), the same as in the preceding quarter worth $90.8 million.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Arcimoto, Inc. (NASDAQ: FUV), PubMatic, Inc. (NASDAQ: PUBM), and Beam Global (NASDAQ: BEEM), Workhorse Group Inc. (NASDAQ: WKHS) is one of the best high short interest stocks to buy now.
6. Exela Technologies, Inc. (NASDAQ: XELA)
Number of Hedge Fund Holders: 8
Float Shorted: 36.1%
Exela Technologies, Inc. (NASDAQ: XELA) stock has offered investors returns exceeding 68% over the course of the past year. It is placed sixth on our list of 10 best high short interest stocks to buy now. The firm is headquartered in Texas and markets transaction processing solutions. On July 16, the share price of the company jumped over 12% after it announced that NYSE Arca launched options trading in the stock. The company is a retail investor favorite and has seen share price surge amid interest on internet platform Reddit in recent weeks.
On June 2, investment advisory Cantor Fitzgerald assumed coverage of Exela Technologies, Inc. (NASDAQ: XELA) stock with an Overweight rating and a price target of $4, highlighting the improving business fundamentals of the firm in the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Armistice Capital is a leading shareholder in Exela Technologies, Inc. (NASDAQ: XELA) with 1.8 million shares worth more than $3.9 million.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), Arcimoto, Inc. (NASDAQ: FUV), PubMatic, Inc. (NASDAQ: PUBM), and Beam Global (NASDAQ: BEEM), Exela Technologies, Inc. (NASDAQ: XELA) is one of the best high short interest stocks to buy now.
5. PubMatic, Inc. (NASDAQ: PUBM)
Number of Hedge Fund Holders: 5
Float Shorted: 36.6%
PubMatic, Inc. (NASDAQ: PUBM) is a California-based company that markets cloud infrastructure solutions. It is ranked fifth on our list of 10 best high short interest stocks to buy now. The company’s shares have returned 10% to investors over the past six months. In earnings results for the first quarter, posted on May 13, the firm reported earnings per share of $0.09, beating market predictions by $0.09. The revenue over the period was more than $43 million, up 54% year-on-year and beating estimates by more than $4 million.
On June 10, investment advisory Evercore upgraded PubMatic, Inc. (NASDAQ: PUBM) stock to Outperform from In Line with a price target of $40, citing greater conviction for revenue estimates for the firm as the reason behind the ratings update.
At the end of the first quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $63 million in PubMatic, Inc. (NASDAQ: PUBM), down from 10 in the preceding quarter worth $59 million.
4. Arcimoto, Inc. (NASDAQ: FUV)
Number of Hedge Fund Holders: 5
Float Shorted: 37.2%
Arcimoto, Inc. (NASDAQ: FUV) is placed fourth on our list of 10 best high short interest stocks to buy now. The stock has returned 187% to investors over the past year. The firm is based in Oregon and makes and sells three-wheeled electric vehicles. On July 28, the firm debuted the first driverless FUV at the FUV and Friends Summer Showcase in Portland. The product is named Roadster and uses a new torque vectoring technology that will also be used on other vehicles being developed by the firm.
On July 22, Arcimoto, Inc. (NASDAQ: FUV) announced that it had launched a battery recycling program with Redivivus. The latter will provide the former with recycling technology and battery processing solutions to neutralize materials in cells and battery modules as part of the deal.
At the end of the first quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $11 million in Arcimoto, Inc. (NASDAQ: FUV), the same as in the previous quarter worth $8 million.
3. Beam Global (NASDAQ: BEEM)
Number of Hedge Fund Holders: 7
Float Shorted: 37.6%
Beam Global (NASDAQ: BEEM) is a company that makes and sells products used in the development of electric vehicle charging infrastructure. The firm is based in California and markets renewable solutions. It is ranked third on our list of 10 best high short interest stocks to buy now. The company’s shares have returned 117% to investors over the past twelve months. On June 24, the firm announced that it would showcase the products it is working on for military and civilian use at the 2021 Electric Mobility Symposium.
On June 22, the share price of Beam Global (NASDAQ: BEEM) jumped close to 3% after the firm announced that it had been added to the Russell 2000 Index. The inclusion is likely to help the firm become more visible to investors.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $17 million in Beam Global (NASDAQ: BEEM), down from 10 in the previous quarter worth $33 million.
2. Allied Healthcare Products, Inc. (NASDAQ: AHPI)
Number of Hedge Fund Holders: N/A
Float Shorted: 52.6%
Allied Healthcare Products, Inc. (NASDAQ: AHPI) stock has offered investors returns exceeding 67% over the course of the past six months. It is placed second on our list of 10 best high short interest stocks to buy now. The firm is headquartered in Missouri and sells respiratory products used by healthcare companies. Some of the products it sells include aluminum oxygen cylinders, oxygen regulators, pneumatic nebulizers, and portable suction equipment, among other disposable products.
The share price of Allied Healthcare Products, Inc. (NASDAQ: AHPI) has been surging ever since the US government released new recommendations on the use of masks in public spaces and revealed that the Delta variant of the virus was as contagious as chickenpox.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Allied Healthcare Products, Inc. (NASDAQ: AHPI) with 44,400 shares worth more than $210,000.
1. SCWorx Corp. (NASDAQ: WORX)
Number of Hedge Fund Holders: N/A
Float Shorted: 57.6%
SCWorx Corp. (NASDAQ: WORX) is ranked first on our list of 10 best high short interest stocks to buy now. The company’s shares have offered investors returns exceeding 70% over the course of the past six months. The firm markets software solutions for healthcare providers and is based in New York. Some of the services the firm offers include big data analytics, contract management, automation solutions, and data integration and warehousing. The company also sells personal protective equipment used by health workers in the fight against COVID-19.
On June 2, the share price of SCWorx Corp. (NASDAQ: WORX) jumped close to 11% after the firm announced that it had regained compliance with the listing requirements with the NASDAQ and also promoted Tim Hannibal to the CEO of the firm.
SCWorx Corp. (NASDAQ: WORX) is one of the most popular stocks on internet platform Reddit and the share price of the firm has a month-to-date return of over 50%. The resurgence of the coronavirus is also likely to give the firm a boost as it sells COVID-19 testing kits.
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
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Disclose. None. 10 Best High Short Interest Stocks to Buy Now is originally published on Insider Monkey.
