5 Best Short Squeeze Stocks to Buy Now

3. Allogene Therapeutics, Inc. (NASDAQ:ALLO)

Number of Hedge Fund Shareholders: 23

Short Interest: 52.8%

Days to Cover: 19.6

Allogene Therapeutics, Inc. (NASDAQ:ALLO) has been one of the most heavily shorted stocks for several quarters and short sellers continue to be on an all-out attack, with more than 50% of the company’s shares being sold short. The swarm of short sellers would also need close to 20 days to cover all their positions based on typical trading volumes, putting them in prime position for a squeeze.

Hedge funds have remained relatively bullish on Allogene Therapeutics, Inc. (NASDAQ:ALLO) in recent quarters, with no fewer than 18 funds being long ALLO during any quarter since the middle of 2020. Baker Bros. Advisors, co-founded by brothers Julian and Felix Baker, added ALLO to its 13F portfolio during Q1. The fund is one of the most successful healthcare-focused funds in the world.

Analysts are also quite bullish on Allogene Therapeutics, Inc. (NASDAQ:ALLO) in contrast to the majority bearish investor community. JMP Securities has a $15 price target and ‘Buy’ rating on the stock and believes that it represents a “unique opportunity” given its strong cash flow and promising ALLO-316 and ALLO-501A studies.