Market Overview

6 Of The Hottest Stocks Among Short Sellers

6 Of The Hottest Stocks Among Short Sellers
Related CLF
32 Stocks Moving In Wednesday's Pre-Market Session
Benzinga's Option Alert Recap From October 24
Related CR
Benzinga's Top Upgrades, Downgrades For October 26, 2017
12 Stocks To Watch For October 24, 2017

Here is a roundup of some of the hottest stocks from a securities lending perspective, according to data from FIS' Astec Analytics. Astec Analytics provides up-to-date, intraday short-selling market insight via securities lending analytics, helping users gauge changes in investor sentiment.

Top Pick: Frontier communications

Rounding up the hottest stocks among short sellers is a new company to Astec's list, Frontier Communications Corp (NASDAQ: FTR), a provider of voice, broadband and video services.

Since the start of 2016, shares of Frontier have lost 24 percent and closed last week at $3.56, which is nearly 40 percent below its 12-month highs.

Short selling peaked back in November, coinciding with the stock's 52-week low of $3.21. However, as a percentage of available supply, short selling activity hit almost 90 percent last week, suggesting a "mistimed sale by long investors."

2. Cliffs Natural Resources

Cliffs Natural Resources Inc (NYSE: CLF) has seen its stock soar more than 500 percent from its 12-month lows to its 12-month highs, yet the stock is still very far removed from its five-year highs of $76 a share.

Since the middle of 2016, short sellers have been active in closing their positions and banking profits, but this trend reversed in mid-November when short selling activity rose around 33 percent from the 12-month lows.

Astec noted that while short interest in the iron ore producer remains at a level that is half of its 12-month high, the recent uptick in activity appears to indicate "there may be more yet to the Cliffs story."

3. Crane

Short selling in Crane Co. (NYSE: CR) recently hit a 12-month high, although volume remains very low as a percentage of shares available it nearly doubled in volume over the past week.

Short sellers appear to be positioning themselves for a correction after the stock broke through a five-year high last week. Astec suggested that the next few weeks will signal if the increase in short selling marks the start of a reversal in the stock.

4. Under Armour

Under Armour Inc (NYSE: UA.C) (NYSE: UAA) launched last week a new line of smart footwear that reinforces the company's commitment to footwear as a growth area for the company.

However, shares lost 8 percent on the week, bringing its total 12-month decline to nearly 30 percent. Short sellers have been slowly closing their positions since the start of November as a percentage of available supply volumes are unchanged.

5. Tesla Motors

Shares of Tesla Motors Inc (NASDAQ: TSLA) traded above the $200 per share mark once again, which prompted short sellers to retreat. Although this may signal a positive development for longs, the fact remains that more than 80 percent of the shares available in the market remain borrowed — is just slightly below the 12-month average of 4 percent.

6. Restoration Hardware

Restoration Hardware Holdings Inc (NYSE: RH) closes out Astec's list of the hottest shorts.

Restoration Hardware's stock has fallen around 60 percent over the past year and the company's poor outlook announcement for the fourth quarter and 2017 dealt a blow to longs. Short sellers reacted to the announcement by adding a further 12 percent to their positions by volume, which indicates that short sellers believe Restoration Hardware's stock will continue to decline.

Posted-In: Astec Astec Analytics FISNews Short Sellers Short Ideas Movers Trading Ideas Best of Benzinga


Related Articles (CLF + CR)

View Comments and Join the Discussion!

Partner Center