5 Short Squeeze Candidates To Watch: Aterian Tops The List, System1 Group And Longeveron Join Leaderboard

Potential short squeeze plays gained steam in 2021, with new retail traders looking for the next huge move.

A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back the shares they initially borrowed at a higher price.

A squeeze can occur when short sellers are forced into buying to cover their position, which can cause shares to move up higher on many occasions.

Fintel Data: Data from Fintel, which requires a subscription, provides a look at several of the top shorted stocks and data on how likely a short squeeze is to occur.

Here’s a look at Fintel’s top five short squeeze candidates for the week of April 11.

Aterian: Consumer products company Aterian (NASDAQ:ATER) tops the Fintel short squeeze leaderboard for the week. Fintel shows short interest up 14% in the last month and 31.9% of the company’s float short. A cost to borrow of 61.5% is reported. Shares of Aterian were up 21% Friday and have nearly doubled in the last week.

Related Link: What's Going On With System1 Stock This Week 

Guardforce AI: Security solutions company Guardforce AI Co (NASDAQ:GFAI) drops down several positions after topping last week’s report. Fintel shows 22.6% of the total float short, a decrease from last week’s 33.5% reported. The cost to borrow on shares is 165.5%, down from last week’s 171%, but still among the highest on the leaderboard.

Longeveron: Biotechnology company Longeveron (NASDAQ:LGVN) ranks fifth on the leaderboard. Fintel shows 16.2% of the total float short and a cost to borrow of 202%. Short interest was up 80.7% in the most recent monthly report.

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