Potential short squeeze plays gained steam in 2021 and continued through 2022 with new traders looking for the next huge move.
High short interest and a high cost to borrow are among the common traits that could lead to a short squeeze.
Here’s a look at the top five short squeeze candidates this week based on the Fintel short squeeze leaderboard.
Related Link: What Is A Short Squeeze?
- PaxMedica Inc PXMD: Clinical-stage biopharmaceutical company PaxMedica moves back into the top five short squeeze candidates, after weeks of moving up the leaderboard. The company moves up seven positions to top the list. Data shows 33.2% of the float short and a cost to borrow of 464%. The cost to borrow for PaxMedica ranks second on the short squeeze leaderboard for the week.
- ASLAN Pharmaceuticals ASLN: Making one of the biggest moves of the week is clinical-stage biopharmaceutical company ASLAN. The company moves up 221 places to rank second for the week. Data shows 41.3% of the float short and a cost to borrow of 13.9%. H.C. Wainwright reiterated a Buy rating and $20 price target on ASLAN, which trades at $3 a share, on Monday morning. The company also announced recently that two abstracts have been accepted to present at the 1st International Societies for Investigative Dermatology Meeting in Japan from May 10 to May 13.
- Blue Apron Holdings APRN: Meal kit company Blue Apron has been a popular short squeeze candidate over the last two years for retail traders. The stock moves back into the top five positions, ranking third for the week after moving up eight positions. Data shows 16.3% of the float short and a cost to borrow of 23.6%. The company reported fourth-quarter financial results, which saw revenue of $106.8 million beat Street estimates of $100.1 million. The company did not provide guidance and said it is focused on adjusted EBITDA profitability.
- MoonLake Immunotherapeutics MLTX: The lone carryover from last week’s top five short squeeze candidates is MoonLake, which moves down one position to rank fourth. Data shows 17.8% of the float short, up from last week’s 14.4% reported. The cost to borrow on shares is 15.3%, up from last week’s 14.4%. Cantor Fitzgerald recently maintained an Overweight rating on the company and raised the price target to $29.
- MicroStrategy Inc MSTR: Software company and Bitcoin BTC/USD holder MicroStrategy moves back into the top five short squeeze candidates for the first time since February. The stock ranks fifth, moving up13 positions. Data shows 33.7% of the float short and a cost to borrow of 8.6%.
Stocks to Watch: Outside the top five short squeeze candidates, several other names are making big moves and could be ones to watch for investors.
- Getty Images Holdings GETY: After topping the list for four straight weeks, Getty Images fell out of the top five several weeks ago. The stock ranks seventh for the week with 59.2% of the float short and a cost to borrow of 91.4%.
- Beam Global BEEM: Beam Global ranks ninth for the week after moving up 15 positions. Data shows 16.1% of the float short and a cost to borrow of 20.3%.
- Kala Pharmaceuticals KALA: Dropping out of the top five short squeeze candidates, Kala falls 11 places to rank thirteenth for the week. Data shows 14.3% of the float short, up from last week’s 14.2%. The cost to borrow on shares is 447.3%, down from last week’s 507%, but one of the highest for the week.
- Shift Technologies SFT: Used car company Shift ranks 14th for the week, moving up 837 positions, one of the biggest moves of the week. Data shows 110.3% of the float short and a cost to borrow of 5.7%.
- Build-A-Bear Workshop BBW: The plush toy retailer ranks 41st for the week, moving up 41 positions on the list. Data shows 15.6% of the float short and a cost to borrow of 56.9%. The company saw shares trade higher at the start of March after reporting quarterly results.
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