In this article, we will discuss the 5 most shorted stocks to watch today. To take a look at some more stocks being shorted and the latest market situation, go to 10 Most Shorted Stocks to Watch.
5. Arcimoto, Inc. (NASDAQ:FUV)
Float Shorted: 44.40%
Number of Hedge Fund Holders as of December 31: 1
Arcimoto, Inc. (NASDAQ:FUV) is a Eugene, Oregon-based electric vehicle company that manufactures two-wheel and three-wheel fun utility vehicles (FUV). The company also sells EVs specially designed for last-mile delivery and rapid responders for emergencies.
Arcimoto, Inc. (NASDAQ:FUV) is burning through cash fast and would be required to sell new common shares to raise funds for operations. As of March 31, Arcimoto, Inc. (NASDAQ:FUV) had only $7.2 million left in cash. The company is operating on the expectations that it will be able to secure a significant amount of Advanced Technology Vehicles Manufacturing (ATVM) loan.
Only one hedge fund held a stake in Arcimoto, Inc. (NASDAQ:FUV) as of Q4 2021, compared to 3 funds in the previous quarter.
4. Citi Trends, Inc. (NASDAQ:CTRN)
Float Shorted: 47.20%
Number of Hedge Fund Holders as of December 31: 20
Citi Trends, Inc. (NASDAQ:CTRN) is a Savannah, Georgia-based retailer of discounted apparel and home products that target urban customers specifically, with more than 600 stores across the US.
Citi Trends, Inc. (NASDAQ:CTRN) has come under intense pressure due to increased inflation, resulting in higher costs. Earlier today, Craig-Hallum at Jeremy Hamblin downgraded Citi Trends, Inc. (NASDAQ:CTRN) from a Buy to a Hold rating. The analyst also slashed the price target from $80 to $34. Hamblin stated that the company’s guidance is expected to fall as the inflationary pressures are unlikely to reduce this year. Citi Trends, Inc. (NASDAQ:CTRN) has lost over 69% of its value since the start of the year.
The bearish sentiment on the stock is reflected by the decrease in hedge fund holders from 26 in the third quarter of 2021 to 20 in Q4 2021.
3. Camping World Holdings, Inc. (NYSE:CWH)
Float Shorted: 47.84%
Number of Hedge Fund Holders as of December 31: 22
Camping World Holdings, Inc. (NYSE:CWH) is a Lincolnshire, Illinois-based company that specializes in selling recreational vehicles (RVs) and their various components.
Camping World Holdings, Inc. (NYSE:CWH) stock has plummeted by over 33% since the start of 2022. The demands for RVs can be expected to soften further as rising inflation takes a toll on the customers’ spending power, who would be forced to cut down discretionary expenses. On May 5, the price target on Camping World Holdings, Inc. (NYSE:CWH) was also lowered from $40 to $35 at Baird, citing mixed Q1 2022 results.
On a sequential basis, the number of hedge funds holding Camping World Holdings, Inc. (NYSE:CWH) decreased by 1 to a total of 22 in Q4 2021.
2. Heron Therapeutics, Inc. (NASDAQ:HRTX)
Float Shorted: 47.95%
Number of Hedge Fund Holders as of December 31: 19
Heron Therapeutics, Inc. (NASDAQ:HRTX) is a San Diego, California-based specialty biotech company that develops new therapeutics by employing its proprietary Biochronomer polymer-based drug delivery platform. The drug delivery system improves the therapeutic profile of injectable pharmaceuticals. Instead of injecting it once or twice per day, the drug can be injected after one or two weeks.
In Q1 2022, Heron Therapeutics, Inc. (NASDAQ:HRTX) recorded an EPS Normalized Actual of -$0.63, missing the analysts’ estimates by $0.11. Moreover, the company reported a net income of -$63.9 million, down 21.43% YoY. Heron Therapeutics, Inc. (NASDAQ:HRTX) stock has lost over 75% of its value in the last year. On May 10, Boris Peaker at Cowen slashed the target price on Heron Therapeutics, Inc. (NASDAQ:HRTX) from $13 to $7.50, citing the company’s current financial overhang.
At the end of Q4 2021, 19 hedge funds held a stake in Heron Therapeutics, Inc. (NASDAQ:HRTX), up from 16 in the previous quarter.
1. Conn’s, Inc. (NASDAQ:CONN)
Float Shorted: 66.38%
Number of Hedge Fund Holders as of December 31: 10
Conn’s, Inc. (NASDAQ:CONN) is a Woodlands, Texas-based store chain operator of electronic appliances, furniture, mattresses, and other consumer durables.
Conn’s, Inc. (NASDAQ:CONN) has been facing persistent near-term headwinds in the form of higher product and freight costs, which have impacted margins. Furthermore, the rise in interest rate has also restricted the ability of customers to buy on credit, reducing spending on consumer durables.
Conn’s, Inc. (NASDAQ:CONN) posted an EPS Normalized Actual of $0.33 for Q1 2022, missing the consensus estimate by $0.13. The company also missed the revenue estimates by $6.9 million. Conn’s, Inc. (NASDAQ:CONN) has developed a new growth strategy to drive expansion and reduce the company’s dependence on subsidizing the retail segment with the credit segment. However, analysts remain skeptical about Conn’s, Inc.’s (NASDAQ:CONN) ability to execute the strategy successfully.
The number of hedge funds invested in Conn’s, Inc. (NASDAQ:CONN) decreased from 15 in Q3 2021 to 10 in the fourth quarter of 2021.
Raging Capital Management shared its insights on Conn’s, Inc. (NASDAQ:CONN) in its Q3 2021 investor letter. Here’s what the investment management firm said:
“Conn’s: Anchored by our deep analytic insights into their lending book, we made a living shorting this subprime lender masquerading as a retailer, including profitable trades in 2013, 2014 and 2019. The fact that this parasitic company is still in business speaks to the flaws in the Fed’s easy money policies.”
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