The 10 Most Heavily-Shorted Stocks Of January 2021
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The Briefing
- Retail brands, among others, have been the target of short-sellers amidst the COVID-19 pandemic
- Individual investors have rallied behind a number of these stocks in an attempt to force a “short-squeeze”
Short Sellers Look to Profit from Struggling Companies
The prospects of retailers such as GameStop have deteriorated over the course of the COVID-19 pandemic, leading many hedge funds to bet against them by taking short positions.
Shorting a company involves borrowing its shares, selling them at current prices, and then buying them back in the future at what is hopefully a lower price. Essentially, short-sellers are betting that the company will underperform in the future.
The 10 Most Heavily-Shorted Stocks of January 2021
The following companies had the highest short interest as of January 29, 2021. Short interest is the % of a company’s shares that have been borrowed and sold, but not yet returned.
| Company | Short Interest (%) | YTD Return (%) | Sector |
|---|---|---|---|
| GameStop | 121% | 422% | Consumer Discretionary |
| Dillards | 95% | 40% | Consumer Discretionary |
| AMC Entertainment | 79% | 289% | Communication Services |
| Virgin Galactic | 72% | 109% | Industrials |
| fuboTV | 72% | 100% | Communication Services |
| Bed Bath & Beyond | 65% | 41% | Consumer Discretionary |
| Ligand Pharmaceuticals | 65% | 75% | Health Care |
| National Beverage Corp. | 63% | 44% | Consumer Staples |
| SunPower | 58% | 73% | Technology |
| Tanger Factory Outlet Centers | 52% | 32% | Real Estate |
Source: YTD returns as of Feb. 2, 2021
Many of the companies on this list are brick-and-mortar based retailers that have struggled to attract business during COVID-19 lockdowns. This includes GameStop, Dillards, Bed Bath & Beyond, and AMC Entertainment, America’s largest operator of movie theatres.
Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...
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