Is NIKE, Inc. (NKE) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?

We recently published a list of 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we are going to take a look at where NIKE, Inc. (NYSE:NKE) stands against other most crowded hedge fund stocks that are targeted by short sellers.

Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right?

Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side.

Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally.

We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio.

Is NIKE Inc. (NKE) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?

A team of trainers and athletes displaying a wide range of athletic and casual footwear.

NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 73

Short Interest:  4.35%

NIKE, Inc. (NYSE:NKE) is a well-known brand that sells athletic footwear, equipment, and accessories, among other products. The stock has a high short interest, and a 1-year stock performance of -38% reflects that perfectly.

The company reported a revenue drop in Q3 2025, but matters were made worse by declining gross margins as a result of tariffs. The new CEO has only been in office for just over half a year so investors may want to give him a little more time to work on the turnaround.

Nike (NYSE:NKE) is preparing to launch its new brand SKIMS in collaboration with Kim Kardashian. The firm is attempting to do something big with this move, and has even turned this brand into a separate segment, to be run outside its major departments like basketball and running. Negotiations on the brand’s launch have been going on for nearly two years, and things finally seem to be falling in place for both the brand and Nike.

Overall, NKE ranks 10th on our list of most crowded hedge fund stocks that are targeted by short sellers. While we acknowledge the potential of NKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.