We recently published a list of 20 Underperforming Stocks Targeted By Short Sellers. In this article, we are going to take a look at where PBF Energy Inc. (NYSE:PBF) stands against other underperforming stocks targeted by short sellers.
Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company’s bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors.
The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company’s downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest.
We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest.
Aerial view of an oil refinery, with smoke billowing from its chimneys.
PBF Energy Inc. (NYSE:PBF)
Short interest: 13.96%
6 months’ performance: -49.44%
PBF Energy Inc. refines and supplies petroleum products. It generates its revenues through the Logistics and Refining segments. The company produces ultra-low-sulfur diesel, diesel fuel, gasoline, heating oil, lubricants, jet fuel, and petrochemicals.
In the latest quarterly earnings announced last week, the firm recorded a net loss of $3.09 per share, a bigger loss than the $2.82 reported in the previous quarter. Cash flows took a double hit, first due to a $330 million working capital requirement and then due to a higher inventory resulting from refinery downtimes.
In 2025, the company anticipates operating costs to increase slightly to $7.20 per barrel. PBF Energy needs a crack spread of $10 per barrel to break even its free cash flow. However, as per the guidance, the company is unlikely to deliver profitability anytime soon. Due to the higher natural gas prices, the firm’s guidance targets may be at risk. The company is at the risk of facing additional challenges due to the further gas price rise driven by potential demand growth in 2025.
Overall, PBF ranks 20th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of PBF 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 PBF but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.