5 Most Shorted Stocks Right Now on Wall Street

In this article, we will look at the 5 most shorted stocks on Wall Street right now. If you want to explore similar stocks, you can go to 15 Most Shorted Stocks Right Now on Wall Street.

5. Silvergate Capital Corporation (NYSE:SI)

Number of Hedge Fund Holders: 22

Short % of Float (Jan 30, 2023): 64.93%

Silvergate Capital Corporation (NYSE:SI) is the bank holding company for Silvergate Bank and provides various banking products and services to businesses and individuals in the United States. As of January 30, 64.93% of the company’s float has been shorted. Silvergate Capital Corporation (NYSE:SI) is placed fifth among the most shorted stocks on Wall Street right now.

On March 2, Compass Point analyst David Rochester lowered his price target on Silvergate Capital Corporation (NYSE:SI) to $16 from $10 and downgraded the stock to Neutral from Buy.

At the end of Q4 2022, Silvergate Capital Corporation (NYSE:SI) was a part of 22 investors’ portfolios. These funds held collective positions worth $106.5 million in the company, down from $441.3 million in the previous quarter with 27 positions.

As of December 31, Miller Value Partners is the top investor in Silvergate Capital Corporation (NYSE:SI) and has disclosed a stake worth $24.7 million in the company.

Here is what Artisan Partners had to say about Silvergate Capital Corporation (NYSE:SI) in its fourth-quarter 2022 investor letter:

“Silvergate Capital Corporation (NYSE:SI) (holding company for its wholly owned subsidiary, Silvergate Bank) is the leading regulated provider of traditional banking solutions to the digital currency industry. Our thesis was focused on its ability to expand the Silvergate Exchange Network (SEN), a proprietary, virtually instantaneous payment network for participants in the digital currency industry which serves as a platform for the development of additional products and services. As a bridge between regulated financial markets and the crypto industry, the company has established itself as a core infrastructure layer. Unfortunately, disruption in the digital asset industry, fueled by the unfolding demise of FTX, has once again raised uncertainty around the health of the digital asset industry overall. We not only questioned our profit cycle thesis given the issues at FTX, but we also had concerns surrounding the Silvergate franchise given the now increased level of regulatory uncertainty and decided to harvest our GardenSM position.”

4. The Beauty Health Company (NASDAQ:SKIN)

Number of Hedge Fund Holders: 24

Short % of Float (Jan 30, 2023): 40.92%

The Beauty Health Company (NASDAQ:SKIN) operates as a consumer products company and is involved in the development and distribution of skin care products and solutions across the globe. On February 16, Cowen analyst Oliver Chen lowered his price target on The Beauty Health Company (NASDAQ:SKIN) to $15 from $20 and maintained an Outperform rating on the shares.

The Beauty Health Company (NASDAQ:SKIN) is one of the most shorted stocks on Wall Street right now. As of January 30, the stock has a short interest of over 40.92%.

The Beauty Health Company (NASDAQ:SKIN) was a part of 24 investors’ portfolios at the end of the fourth quarter of 2022. These funds held collective stakes worth $149.2 million in the company. This is compared to 28 hedge funds in Q3 2022 with stakes worth $298.6 million. The hedge fund sentiment for the stock is negative.

As of December 31, Rima Senvest Management is the top stockholder in The Beauty Health Company (NASDAQ:SKIN) and has a stake worth $41.6 million in the company.

3. Kohl’s Corporation (NYSE:KSS)

Number of Hedge Fund Holders: 26

Short % of Float (Jan 30, 2023): 22.01%

On March 1, Kohl’s Corporation (NYSE:KSS) posted earnings for the fourth quarter of fiscal 2023. The company reported a loss per share of $2.49 and missed EPS estimates by $3.46. The company’s revenue for the quarter amounted to $5.78 billion, down 7.15% year over year, and fell short of expectations by $251.92 million.

Kohl’s Corporation (NYSE:KSS) is the third most shorted stock on Wall Street right now. As of January 30, 22.01% of the company’s float has been shorted.

At the close of the fourth quarter of 2022, 26 hedge funds were long Kohl’s Corporation (NYSE:KSS). This is compared to 31 hedge funds in the preceding quarter. As of December 31, Marshall Wace LLP is the leading investor in Kohl’s Corporation (NYSE:KSS) and has a position worth $6.60 million in the company.

2. CNX Resources Corporation (NYSE:CNX)

Number of Hedge Fund Holders: 30

Short % of Float (Jan 30, 2023): 26.80%

CNX Resources Corporation (NYSE:CNX) operates as an independent natural gas and midstream company in the United States. With a short interest of 26.80%, as of January 30, CNX Resources Corporation (NYSE:CNX) is one of the most shorted stocks on Wall Street right now.

On January 19, Mizuho analyst Nitin Kumar took coverage of CNX Resources Corporation (NYSE:CNX) with an Underperform rating and a  $19 price target.

At the close of Q4 2022, CNX Resources Corporation (NYSE:CNX) was held by 30 hedge funds. These funds held collective stakes worth $392.9 million in the company. This is compared to 35 hedge funds in the previous quarter with stakes worth $433.9 million.

As of December 31, Southeastern Asset Management is the top investor in CNX Resources Corporation (NYSE:CNX) and has disclosed a position worth $193.3 million in the company.

Here is what Longleaf Partners had to say about CNX Resources Corporation (NYSE:CNX) in its fourth-quarter 2022 investor letter:

“CNX Resources Corporation (NYSE:CNX) – CNX was the top contributor for the year, but we were surprised it wasn’t an even larger one. Its value per share strongly outgrew its price performance for the year. While all energy companies saw a boost from higher prices, CNX had previously done more price hedging than peers. This decision held back near-term reported earnings, which remain the market’s focus. This helped relative returns at unhedged and more leveraged companies that were hoping for higher prices. CNX has been taking advantage of a widening price-to-value gap for itself as the year went on by continuing to be one of our largest share repurchasers. When you combine strong capital allocation like this with geopolitical conflict solidifying the long-term value of North American natural gas while hedges roll off with the passage of time, we remain excited about CNX’s future.”

1. Carvana Co. (NYSE:CVNA)

Number of Hedge Fund Holders: 36

Short % of Float (Jan 30, 2023): 85.41%

Carvana Co. (NYSE:CVNA) is an automotive retail company that operates an e-commerce platform for buying and selling used cars in the United States. At the end of the fourth quarter of 2022, 36 hedge funds were long Carvana Co. (NYSE:CVNA) and disclosed collective positions worth $209.8 million in the company. This is compared to 43 hedge funds in the previous quarter with stakes worth $656.4 million. The hedge fund sentiment for the stock is negative.

On February 24, Deutsche Bank analyst Emmanuel Rosner lowered his price target on Carvana Co. (NYSE:CVNA) to $10 from $16 and reiterated a Hold rating on the shares. As of January 30, 85.41% of the company’s float has been shorted. Carvana Co. (NYSE:CVNA) is placed at the top of our list of the most shorted stocks on Wall Street right now.

As of December 31, Spruce House Investment Management is the most prominent shareholder in Carvana Co. (NYSE:CVNA) and has a position worth $47.4 million in the company.

Here is what Saga Partners had to say about Carvana Co. (NYSE:CVNA) in its second-half 2022 investor letter:

“I have discussed Carvana Co. (NYSE:CVNA) several times since we first purchased it in 2019 but want to provide an update given the stock’s decline and negative headlines. Historically, Carvana has grown gross profits at a faster rate than operating costs. In 2021, Carvana grew retail unit volumes 74% to over 400,000 cars to become the second largest used car dealer after CarMax. Carvana reached $1.9 billion in gross profits, EBITDA breakeven, and expectations entering 2022 were for continued unit volume growth and scale operating costs.

Similar to Redfin, Carvana has been impacted by pretty extreme industry disruptions/volatility. Supply chain bottlenecks restricted new car production and caused prices to rise. When combined with higher interest rates, car affordability declined and used car volumes crashed

Carvana plans and hires for expected capacity 6-12 months into the future. Entering 2022 the Company expected to grow unit volumes in the ~30% range year-over-year and therefore faced a cost structure far too high for the retail unit volumes experienced. Since demand has come in below expectations, management is now pursuing cost cuts to get back to EBITDA breakeven…” (Click here to read the full text)

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