5 Most Shorted Stocks Hedge Funds Are Buying

In this article, we discuss the 5 most shorted stocks hedge funds are buying. If you want to read our detailed analysis of these stocks, go directly to the 10 Most Shorted Stocks Hedge Funds Are Buying.

5. Arch Resources, Inc. (NYSE:ARCH)

Number of Hedge Fund Holders: 28 

Float Shorted: 26.09%    

Arch Resources, Inc. (NYSE:ARCH) produces and sells coal. Amid a clean energy drive spearheaded by US President Biden, the stock has suffered and a recent Bloomberg report indicates that coal stockpiles at power plants across the country are at historic lows. This comes even as miners reduce production and more coal is burned at plants due to the increase in natural gas prices over the past few months. The company missed market expectations on earnings per share by $1.02 in the third quarter.  

Despite the bleak outlook, analysts are largely constructive on Arch Resources, Inc. (NYSE:ARCH). Earlier this month, B Riley raised the price target on the stock to $120 from $87, keeping a Buy rating. 

At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $276 million in Arch Resources, Inc. (NYSE:ARCH), up from 25 in the previous quarter worth $162 million.