5 Most Shorted Stocks to Watch in July

3. Earthstone Energy, Inc. (NYSE:ESTE)

Float Shorted: 46.32%

Number of Hedge Fund Holders: 16

Earthstone Energy, Inc. (NYSE:ESTE) is a Denver, Colorado-based oil and gas exploration and production (E&P) company with a focus on the Midland Basin in the West Texas region and the Eagle Ford Trend in South Texas.

On July 6, Scott Hanold at RBC Capital downgraded Earthstone Energy, Inc. (NYSE:ESTE) stock from an Outperform to a Market Perform rating with a target price of $21. The analyst downgraded the stock due to the company’s relative valuation against the industry benchmark. Hanold highlighted that the management has been able to grow the company’s operations through multiple acquisitions in the last one-and-a-half year. However, some of these acquisitions have still not been fully integrated with the existing operations of Earthstone Energy, Inc. (NYSE:ESTE), which could result in rising costs in the short term during high inflation.

Earthstone Energy, Inc. (NYSE:ESTE) was held by 16 hedge funds at the end of Q1 2022.