Benzinga - Potential short squeeze plays gained steam in 2021, continued through 2022, and remain a focus of new traders looking for the next huge move.
High short interest and 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 and several stocks to watch this week based on the Fintel short squeeze leaderboard.
Getty Images Holdings (NYSE: GETY) tops the short squeeze leaderboard for a third straight week. Data shows 87.7% of the float short, in line with last week’s report. The cost to borrow on shares is 97.4%, down from last week’s 107.2% reported. The stock is no stranger to the list, topping the leaderboard for four straight weeks in February. Since going public via SPAC merger, Getty Images has been a frequent short-squeeze candidate. Shares of the Seattle-based company spiked Monday after Trillium Capital offered to acquire the company for $10 per share.
MoonLake Immunotherapeutics (NASDAQ: MLTX) moves up 17 places to rank second for the week. The biopharmaceutical company has previously been a short-squeeze candidate ranking in the top five candidates of the Fintel leaderboard. Data shows 44.7% of the float short and a cost to borrow of 11.8%.
Kala Pharmaceuticals (NASDAQ: KALA) ranks third for the week, moving up one position from last week’s leaderboard. Data shows 16.3% of the float short. The cost to borrow on shares is 381.2%, which is down from last week’s 439.8%. The biopharmaceuticals company remains one of the highest of all stocks tracked.
Guardforce AI (NASDAQ: GFAI) is one of several companies that has benefitted from having AI in their name and stock ticker, with a rush of interest from investors looking for artificial intelligence related stocks. The Security solutions company found itself on the Stock Whisper Index, showing that Benzinga saw an increase in interest from the name. The stock ranks fourth on the Fintel short squeeze leaderboard, moving up three positions. Data shows 8.1% of the float short and a cost to borrow of 394.8%. The company saw shares fall after reporting quarterly financial results. Full fiscal year revenue of $34.5 million was down on a year-over-year basis. The company did share that robotics AI solutions segment revenue was up 245% year-over-year in 2022.
Financial services company B. Riley Financial (NASDAQ: RILY) moves up 24 positions to rank fifth on the leaderboard. Data shows 30.4% of the float short and a cost to borrow of 13.3%.
Related Link: What Is A Short Squeeze?
Stocks to Watch: Outside the top five short squeeze candidates are several stocks with high short interest or cost to borrows and big moves that investors should monitor.
- Biopharmaceutical company PaxMedica Inc (NASDAQ: PXMD) falls out of the top ten to rank sixth. Data shows 34.6% of the float short and a cost to borrow of 405.8%, one of the highest cost to borrows of all stocks monitored.
- Electric vehicle company Arrival Inc (NASDAQ: ARVL) held a reverse stock split in April and sees high short interest before and after the split. Data from Fintel shows 183.2% of the float short and a cost to borrow of 22.2%. The stock moves up 1,442 positions on the leaderboard to rank ninth.
- Clinical stage biopharma company MEI Pharma (NASDAQ: MEIP) moves up 2,098 places to rank 18th on the leaderboard, making one of the biggest jumps. Data shows 94.2% of the float short and a cost to borrow of 2.0%.
- Apparel retailer Torrid Holdings (NYSE: CURV) ranks 20th on the leaderboard, moving up 10 positions. Data shows 13.3% of the float shot and a cost to borrow of 7.2%. Retailers have been popular short targets with a handful of bankruptcy announcements in the last year.
- Art and crafts retailer Joann Inc (NASDAQ: JOAN) ranks 21st for the week, moving up 27 positions. Data shows 24.9% of the float short and a cost to borrow of 20.3%.
Next: Benzinga's 'Stock Whisper Index' - 5 Stocks Investors Are Secretly Monitoring But Not Talking About Yet
Image by Gerd Altmann from Pixabay
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