Traders also look at the activity of short sellers for trading opportunities. Sometimes, stocks with a large amount of short selling activity could be potential candidates for short squeezes. Other times, a large outstanding short position could be a sign that there’s something wrong with a company and/or its stock.
S3 Partners analyst Ihor Dusaniwsky recently published a list of U.S. stocks that have endured the largest increase in their outstanding short positions over the past month.
Rather than looking simply at shares shorted, Dusaniwsky said including a stock’s share price in the calculation always gives a clearer picture of how aggressive short sellers are being.
“Simple shares shorted does not tell us the amount of ‘betting’ done in a security, by incorporating the ‘chip size’ or the price of the stock in the metric we are actually seeing the increase and decrease of dollar short-side exposure in a security,” Dusaniwsky said.
Stocks with the largest increases in the dollar value of their short positions are the ones getting the most attention from short sellers.
Most Aggressively Shorted Stocks
Here’s a list of the 11 most aggressively shorted stocks of the past month, sorted by S3’s estimates of the increase in their outstanding short positions in that time.
- Davita Inc (NYSE: DVA), $552.4 million increase.
- Wells Fargo & Co (NYSE: WFC), $481.4 million increase.
- Bristol-Myers Squibb Co (NYSE: BMY), $453.7 million increase.
- Wayfair Inc (NYSE: W), $406.7 million increase.
- Global Payments Inc (NYSE: GPN), $386.6 million increase.
- Charter Communications Inc (NASDAQ: CHTR), $380.0 million increase.
- Autodesk, Inc. (NASDAQ: ADSK), $354.9 million increase.
- Home Depot Inc (NYSE: HD), $345 million increase.
- Macy's Inc (NYSE: M), $327.9 million increase.
- Allergan plc (NYSE: AGN), $323.1 million increase.
- Lowe's Companies, Inc. (NYSE: LOW), $305.7 million increase.
9 Stocks Trading At The Steepest Discount To Sales
Latest Ratings for DVA
|Sep 2019||Downgrades||Outperform||Market Perform|
View More Analyst Ratings for DVA
View the Latest Analyst Ratings
See more from Benzinga
- Q2 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios
- Large Option Trader Buying Nektar Calls Following Stock Crash
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.