These are the most shorted stocks in the U.S. right now
Heavily-shorted stocks have been making the headlines in recent weeks after a deluge of retail investment led the share price of GameStop and others to skyrocket.
GameStop shares surged as high as $325 a share at the end of January as retail traders inspired by the Reddit thread WallStreetBets piled in, creating a short-squeeze on hedge funds with substantial short positions against the stock. The share price has since fallen back and is now trading just over $40.
Short-selling is a trading strategy that enables investors to capitalize on the depreciation of a stock by borrowing a share and selling it at current market value with a view to repurchasing them at a lower price in future.
GameStop used to be the most shorted stock on the market, with 138% of its float shares in short positions, but the soaring share price forced a number of short-sellers to close out their positions, in some cases at substantial losses.
According to FactSet data, the bricks-and-mortar video game remains the seventh-most shorted stock stateside, with short interest at 39.29% of the company’s float.
Here is a list of the other most-shorted stocks trading on the New York Stock Exchange and Nasdaq Composite.