For the larger part of the year 2021, stocks with high short interest have been the dominant headlines in the financial world. In the early part of the year, the short squeeze of companies like AMC Entertainment Holdings, Inc. (NYSE: AMC) and GameStop Corp. (NYSE: GME) set retail investors against hedge funds in a continuous battle for dominance. A short squeeze usually happens when there is a dramatic rise in the stock of a company causing short-sellers who had initially taken a bet that the stock will lose value to review their decision due to the unusual market conditions. They are thus forced to exit their short positions so that they can limit losses.
Stocks with high short interest are usually susceptible to short squeezes and last year, these short squeezes were responsible for hedge funds losing billions of dollars to the extent that some hedge funds had to shut down permanently while retail investors were enjoying enormous profits. A report by IHS Market Research showed that shorted stocks hold enormous profit potential for investors who are smart enough to evaluate shorted equities accurately and plan accordingly. Now, let us examine the top 5 stocks with the highest short interest:
PubMatic, Inc. (NASDAQ: PUBM)
This is a company based in California that is into the marketing of solutions for cloud infrastructure. The float shorted for the company stands at around 36.6%. Between the ending of the first quarter and the third quarter of the year 2021, the company was able to offer investors returns of 10%. During that period, the revenue climbed up to over $43 million which is up 54% year-on-year while at the same time being about $4 million more than the estimates. The company had five hedge fund holders at the end of the first quarter of the year 2021 with stakes worth $63 million compared to when it previously had ten hedge fund holders in the previous quarter with a combined value of $59 million.
Free Account by The Best Broker
Make money by trading stocks.
Arcimoto, Inc. (NASDAQ: FUV)
This is a company based in Oregon that specializes in the manufacture and sales of three-wheeled electric vehicles. According to Insider Monkey that tracks hedge funds, Arcimoto, Inc. had five hedge fund holders with stakes valued at around $11 million at the end of the first quarter in 2021 which was worth $8 million in the previous quarter. Furthermore, the company has the float shorted at around 37.2% while also providing investors with returns of 187% over the past year.
In the month of July last year, the company introduced the first driverless FUV at the FUV and Friends Summer Showcase in Portland. The brand name of the product is Roadster and it utilizes an innovative torque vectoring technology that will also be applied in other vehicles that are being developed by the company.
Also, in the same month, Acrimoto, Inc. made another announcement that it was launching a battery recycling program in partnership with Redivivus. Redivivus will be providing Acrimoto, Inc. with recycling technology and battery processing solutions as part of the deal. This will enable Acrimoto, Inc. to neutralize materials in cells and battery modules of the vehicles it is producing so that they can function with much better efficiency.
Beam Global (NASDAQ: BEEM)
Beam Global is a company based in California with seven hedge fund holders and the float shorted at around 37.6%. The company is into the marketing of renewable solutions. More specifically, the company focuses on the manufacture and sales of products that are vital to the development of infrastructures used in the charging of electric vehicles. In the past year, the company’s shares offered returns of 117% to investors.
In June last year, the company made an announcement that it will be showcasing its products that are being worked on for both civilian and military use at the 2021 Electric Mobility Symposium. In that same month, another announcement was made by the company that it had been added to the Russell 2000 Index causing the share price of the company to jump to almost 3%. It is also believed that the inclusion in the Russell 2000 Index will provide the company with more exposure and visibility to investors. According to Insider Monkey, at the end of the first quarter of 2021, seven hedge funds had stakes in Beam Global that were valued at $17 million compared to the previous quarter when it was ten hedge fund holders with a combined stake worth $33 million.
Free Account by The Best Broker
Make money by trading stocks.
Allied Healthcare Products, Inc. (NASDAQ: AHPI)
Allied Healthcare Products, Inc. is a company that is based in Missouri that specializes in the sales of respiratory products used by healthcare companies and institutions. Some of the products sold by this company include oxygen regulators, portable suction equipment, aluminum oxygen cylinders, and pneumatic nebulizers just to mention a few. The company’s stock has offered investors returns of over 67% in the last six months and has the float shorted at about 52.6%.
Ever since the release of new recommendations by the U.S. government on the use of masks in public areas to try and combat the Delta variant of the Coronavirus, the share price of Allied Healthcare Products, Inc. has been soaring. Also, among the hedge funds being monitored by Insider Monkey, Citadel Investment Group which is a Chicago-based firm is a leading shareholder in Allied Healthcare Products, Inc. with more than 44,000 shares that are worth over $210,000.
SCWorx Corp. (NASDAQ: WORX)
SCWorx Corp. is based in New York and has offered investors returns that are in excess of 70% over the last six months. The company specializes in marketing software solutions for healthcare providers and has the float shorted at 57.6%. Some of the services offered by the company are data integration and warehousing, automation solutions, large data analytics, and contract management. Furthermore, the company is into the sales of personal protective equipment employed by health workers in battling the pandemic.
In June 2021, the company made an announcement about regaining compliance with the NASDAQ in terms of listing requirements while also promoting one of its senior executives in the person of Tim Hannibal to the position of CEO. Not long afterward, the share price of the company experienced a surge and jumped to almost 11%. SCWorx Corp. It’s likely to be even more boosted with the resurgence of the coronavirus as the company will get to sell more COVID-19 equipment and testing kits.
Free Account by The Best Broker
Make money by trading stocks.
