5 Most Shorted Stocks to Watch in July

Page 1 of 5

In this article, we discuss the 5 most shorted stocks to watch in July. If you want to read our analysis of the US stock market, go directly to the 10 Most Shorted Stocks to Watch in July.

5. Frontier Group Holdings, Inc. (NASDAQ:ULCC)

Float Shorted: 41.85%

Number of Hedge Fund Holders: 24

Frontier Group Holdings, Inc. (NASDAQ:ULCC) is a Denver, Colorado-based operator of an ultra-low-cost airline.

The company is competing with JetBlue Airways Corporation (NASDAQ:JBLU) for the acquisition of Spirit Airlines, Inc. (NYSE:SAVE). Frontier Group Holdings, Inc. (NASDAQ:ULCC) stock is heavily shorted as investors anticipate the deal with Spirit Airlines to fall through. Furthermore, the ultra-low-cost airline is expected to come under pressure as rising inflation would strain the company’s margins moving forward.

As of July 12, Frontier Group Holdings, Inc. (NASDAQ:ULCC) has requested Spirit Airlines to delay the shareholder voting process regarding the takeover till July 27. If the request is approved, it would be the fourth time that the vote has been delayed in the last few months. Spirit Airlines had reached an agreement with Frontier Group Holdings, Inc. (NASDAQ:ULCC) in February 2022 until JetBlue came forward with its bid in April 2022, starting a bidding war.

Overall, 24 hedge funds held a stake in Frontier Group Holdings, Inc. (NASDAQ:ULCC) as of Q1 2022.

Page 1 of 5