Last week, members of the Reddit forum WallStreetBets were able to keep the history books short by working together to tackle hedge funds that are against gambling GameStop Corp. (NYSE: GME).
Targeting GameStop worked well for the Reddit community because GameStop had a very high short-term interest rate – over 130% at the time – and has a relatively small float of 51 million. However, the short squeeze caused major problems for Melvin Capital, which was forced to close its entire GameStop short position due to a loss. After that, Melvin Capital demanded that Citadel and Point72 inject $ 3 billion into its fund to bolster its finances.
The retail community is targeting stocks with the highest percentage of short-term interest rates to force institutions to hedge their positions, driving the stock price up dramatically. Small private investors, large hedge funds, and financial institutions may be wondering which stocks they will target with success next.
Related Link: A short seller joins Benzinga’s ‘Power Hour’ to talk about GameStop. The rest is history
Below are the following 10 most-shorted stocks on the Russell 3000 as of January 29, 2021:
- Speed up Diagnostics Inc. (NASDAQ: AXDX): Market capitalization of $ 600 million with 31.03 total share price and 45% short position.
- Academy Sports and Outdoors Inc. (NASDAQ: ASO): Market cap of $ 1.9 billion with total share of 21.07 million and 45% short position.
- AMC Entertainment Holdings (NYSE: AMC): Market cap of $ 2 billion with a total float of 56.56 million and a short position of 58%.
- Bed Bath & Beyond (NYSE: BBBY): Market capitalization of $ 4.3 billion with total float of 230.80 million and 63% short position.
- Ligand Pharmaceuticals Inc. (NASDAQ: LGND): Market cap of $ 3 billion with a total float of 15.34 million and a short position of 65%.
- Macerich Co (NASDAQ: MAC): Market cap of $ 2.3 billion with a total share of 137.99 and a short position of 57%.
- National Beverage Corp (NASDAQ: FIZZ): Market cap of $ 7.1 billion with total float of 11.64 million and 63% short position.
- SunPower Corporation (NASDAQ: SPWR): Market cap of $ 9.2 billion with a total float of 80.91 million and a short position of 57%.
- Tanger Factory Outlet Centers Inc. (NYSE: SKT): Market cap of $ 1.4 billion with a total float of 90.15% and a short position of 57%.
- Tootsie Roll Industries, Inc. (NYSE: TR): Market cap of $ 2.6 billion with 16.11 million stock shares and 46% short position.
- (Photo by Giorgio Trova on Unsplash)
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.