Market Overview

Short-Sellers Are Trading Tesla, SolarCity, GoPro And Others

Short-Sellers Are Trading Tesla, SolarCity, GoPro And Others
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A new note from FIS Astec Analytics focuses on some extremely heavily-shorted stocks in today’s market. Heavily-shorted stocks can be a double-edged sword for traders.

These stocks typically have strong bear cases to generate such a large short position to begin with, but the potential for huge short squeezes means that any positive developments could send shares skyrocketing.

FIS Astec notes that Wayfair Inc (NYSE: W) remains a heavily-shorted stock despite a 56 percent 12-month gain. The fact that the big gain hasn’t deterred the shorts is an indication of the conviction they have in their bear theses.

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Tesla Motors Inc (NASDAQ: TSLA) is another popular short right now, and one that has paid off in recent months. Despite a 25 percent decline in share price over the past year, FIS Astec notes that Tesla’s borrow volume climbed 3.0 percent last week.

SolarCity Corp (NASDAQ: SCTY) shorts have made some major returns during the stock’s 70 percent decline in the last year. FIS Astec reports that SolarCity borrow costs have climbed 50 percent and borrow volumes spiked 13 percent in the past week as the stock plummeted more than 20 percent.

In addition to these three names, FIS Astec notes heavy short interest in GoPro Inc (NASDAQ: GPRO), Intrexon Corp (NYSE: XON) and VirnetX Holding Corporation (NYSE: VHC).

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for W

Jan 2017Credit SuisseInitiates Coverage OnNeutral
Aug 2016Bank of AmericaDowngradesBuyNeutral
Aug 2016Goldman SachsDowngradesBuyNeutral

View More Analyst Ratings for W
View the Latest Analyst Ratings

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