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 Schlumberger Limited (NYSE:SLB) 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.
An aerial view of a well site, depicting the scale of oil and gas operations.
Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Holders: 80
Short Interest: 4.48%
Schlumberger Limited (NYSE:SLB) operates as a technology provider for the global energy industry. It generates its revenue through Well Construction, Digital & Integration, Production Systems, and Reservoir Performance segments. Despite having a short interest of 4.48%, the stock is in 80 hedge funds’ portfolios.
In Q1, Schlumberger Limited (NYSE:SLB) reported underwhelming results, indicating a 3% year-on-year revenue decline. International revenue declined by 5% due to decreased activity in Saudi Arabia, Mexico, and Russia. However, North America revenue saw an increase of 8% year-on-year.
CEO Olivier Le Peuch mentioned:
“We expect global upstream investment to decline compared to 2024, with customer spending in the Middle East and Asia being more resilient than in other regions.”
Based on the latest quarter’s earnings, the firm anticipates revenue to be flat in Q2 2025. Under current market conditions adjusted EBITDA margin is expected to expand by 50 to 100 basis points. However, for the latter half of the year, the company projects revenue growth to be flat to mid-single-digit. This growth will be aided by new deepwater startups, growth in the digital and data center business, and seasonal activity increases. Margins are also projected to improve during the second half of the year.
Overall, SLB ranks 9th on our list of most crowded hedge fund stocks that are targeted by short sellers. While we acknowledge the potential of SLB 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 SLB 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.
