Short Interest Surge in BioXcel Therapeutics

Investors have significantly increased their short bets on a few clean energy and biotechnology stocks during the first half of July, based on data from FactSet. Short interest in BioXcel Therapeutics has jumped 69% to 8.7 million shares from 5.1 million shares in the first half of the month. This increase represents approximately 43% of the company’s free float of shares available for trading. BioXcel’s stock has declined by nearly 54% year-to-date.

Other Stocks with High Short Interest

Allogene Therapeutics currently holds the highest short interest among the group, accounting for about 54% of its float. Novavax and ProKidney Corp. also appear on the list. However, short interest in ProKidney shares has slightly declined. Additionally, short interest in alternative power companies Sunnova, SunPower, and Maxeon Solar has increased by approximately 15%, 49%, and 6% respectively.

Increase in Stocks with High Short Interest

Trivariate Research reports that the number of stocks with more than 20% of their outstanding shares sold short has reached the upper end of its historic range. These levels exceed those seen during the meme stock craze in early 2021. Pro utilized FactSet data to identify companies that are most susceptible to a short squeeze, which occurs when a shorted stock rises, compelling investors to buy back shares to limit their losses. This short covering often leads to further increases in share prices.

List of Companies with High Short Interest

The following companies listed on the New York Stock Exchange and Nasdaq have short interest accounting for more than 25% of their float and a market cap of at least $100 million as of July 14:

• Carvana: Short interest declined by about 4% but remains around 47% of its float. The online used-car seller’s stock has been volatile and has surged nearly 800% since the beginning of the year.
• C3.ai: Short interest in shares decreased by 8.6% during the first half of July, although approximately 35% of its shares are sold short. The artificial intelligence stock has increased by about 250% this year and has added nearly 8% for the month.
• Groupon: Short interest in the retail stock has risen by 10% since the end of June.
• Guess?: Short interest in the clothing manufacturer has also increased by 10% since the end of June.