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 Occidental Petroleum Corporation (NYSE:OXY) 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.
Oil derricks in the background with a few workers in the foreground, emphasizing the company’s oil and gas production activities.
Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 68
Short Interest: 3.65%
Occidental Petroleum Corporation (NYSE:OXY) explores, acquires, and develops oil and gas properties. The company generates its revenue through Chemical, Oil and Gas, and Midstream & Marketing segments. The stock price has struggled so far, dropping over 21% this year.
Occidental Petroleum (NYSE:OXY) was recently downgraded by Raymond James from Strong Buy to Outperform due to short-term uncertainty over oil prices. The firm also lowered its target price from $81 to $64. However, analyst John Freeman highlighted that the company expects continued improvements in its CrownRock assets. It also anticipates cost savings of over $1 million per well.
The company’s 1PointFive subsidiary secured approval from the U.S. Environmental Protection Agency (EPA) last month. This approval is for Class VI permits, allowing the firm to store carbon dioxide from its STRATOS Direct Air Capture facility in Texas. The facility aims to capture over 500,000 metric tons of CO2 annually and is projected to start its commercial operations in 2025.
Occidental’s President and CEO, Vicki Hollub, mentioned:
“The Class VI permits are a catalyst to unlock value from carbon dioxide and advance Direct Air Capture technology as a solution to help organizations address their emissions or produce vital resources and fuels.”
Overall, OXY ranks 13th on our list of most crowded hedge fund stocks that are targeted by short sellers. While we acknowledge the potential of OXY 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 OXY 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.
