5 Most Shorted Stocks to Watch in June

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

5. Upstart Holdings, Inc. (NASDAQ:UPST)

Number of Hedge Fund Holders: 25

Float Shorted: 31.78%

Stock Price as of June 14: $33.61

Upstart Holdings, Inc. (NASDAQ:UPST) is a San Mateo, California-based AI lending platform that uses non-conventional variables like education, employment status, and marital status to anticipate the creditworthiness of clients and connects with banks and credit unions to give out loans.

On May 20, David Chiaverini at Wedbush gave Upstart Holdings, Inc. (NASDAQ:UPST) an Underperform rating and lowered the price target from $20 to $15. The analyst revealed that Upstart and the Consumer Financial Protection Bureau had mutually terminated the no-action letter, which had provided immunity to Upstart Holdings, Inc. (NASDAQ:UPST) from being charged with fair lending law violations in connection with its proprietary algorithm. This development could result in lower loan originations.

Here’s what Vulcan Value Partners said about Upstart Holdings, Inc. (NASDAQ:UPST) in its Q1 2022 investor letter:

“Upstart Holdings Inc. is an artificial intelligence (AI) and cloud-based lending platform. Upstart’s stock price has been very volatile, but its value has grown steadily. Last year, the company grew its revenue by over 250% organically, which materially exceeded our expectations. In addition, the company continues to generate robust free cash flow and is launching new products to expand its business. Upstart’s value has increased consistently since we first purchased it. Following our discipline, we have added to our position when its stock price has declined and its price to value ratio has improved, and we have reduced our stake when its stock price has risen faster than its value.”

As of Q1 2022, Upstart Holdings, Inc. (NASDAQ:UPST) was held by 25 hedge funds.