Market Overview

Snap Once Again Atop The Short-Seller Favorites List

Snap Once Again Atop The Short-Seller Favorites List

FIS Astec Analytics has released its latest weekly list of the most popular stocks among short sellers.

This week’s list contains some familiar names, including a top pick that has been in and out of the spot for months. Here’s a rundown of the hottest stocks among short sellers.

Top Pick: Snap

Snap Inc (NYSE: SNAP) once again returned to the top spot on this week’s list just in time to be downgraded by underwriter Morgan Stanley. Fis Astec reports that Snap shares available to borrow have been dwindling, suggesting larger institutions may be dumping their long positions in the stock.

Others On The List

1. RH

Despite a 7 percent decline in short interest as a proportion of available shares, nearly 93 percent of available RH (NYSE: RH) shares remain held by short sellers. Those short sellers have had a rough go of it in 2017, with RH shares up 98.7 percent year to date.

2. Blue Apron

Blue Apron Holdings Inc (NYSE: APRN), like Snap, is a popular 2017 IPO stock that has struggled following its debut on the market. Within two days of its IPO, short interest skyrocketed to 7 million shares and now represents 87 percent of available supply.

3. Cara Therapeutics

Despite Cara Therapeutics Inc (NASDAQ: CARA) short sellers closing 6 percent of their positions last week, over 87 percent of available shares are still held by short sellers. The FDA recently granted one of Cara’s kidney disease treatment a “Breakthrough Therapy” designation, but short sellers are doubling down on their bets after the stock soared more than 32 percent on the news.

4. Applied Optoelectronics

Applied Optoelectronics Inc (NASDAQ: AAOI) actually saw its short interest as a proportion of supply drop 1 percent in the past week, but FIS Astec proposed a simple explanation. As short sellers piled into the stock, borrowing fees surged 74 percent, making a short trade an expensive proposition.

5. Under Armour

Under Armour (NYSE: UAA) has spent much of the past few months with 100 percent of its shares available held short, indicating that short selling is being constrained by supply only. Under Armour’s share price has nearly been cut in half from where it was a year ago, down 49.3 percent.

Related Link: Bet On More Tech Downside With This ETF


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