Some individual investors now make it a point to know the Stocks with Highest Short Interest due to the development of meme stock trading during the pandemic. They aim to pressure the short seller and create a massive run for the stock by establishing a position in one of these stocks. Although it’s a hazardous strategy, it can result in gains of 100% or more quickly if executed well. Here is a list of 15 Stocks with the Highest Short Interest in 2022 if this interests you.
Overview of Stocks with Highest Short Interest
Trading Stocks with Highest Short Interest is selling stocks in anticipation of a decline in value. The conviction drives the trading technique that a security’s price will decline, creating an opportunity for the stocks to be later repurchased and the price difference to be captured as profit. Borrowing shares of stocks, short sellers attempt to sell them at the current price to repurchase them at a lower price. This technique aims to profit from the price differential between shorting and repurchasing stocks.
Unlike an investor who maintains stocks because of their worth and the income they provide, traders strive to profit from a price decrease by selling high and purchasing low. Due to the potential for permanent losses, short selling is often only permitted on margin accounts if stock prices begin to rise rather than fall. We’ll look at 15 stocks with the highest short interest in 2022 now that you understand how stocks with the highest short interest work and why investors use them as a trading strategy.
1. Lemonade, Inc. (NYSE:LMND)
The company Lemonade, Inc. (NYSE:LMND) offers insurance services. The company disclosed in early August that it had sold the Enterprise Business Solutions platform to digital insurance provider EIS in an all-cash deal. The answer was a platform for claims automation and fraud detection that Lemonade leased to significant insurance carriers. Metromile, a business that Lemonade bought in late July, owned the platform.
2. P3 Health Partners Inc. (NASDAQ:PIII)
P3 Health Partners Inc. (NASDAQ: PIII), a patient-focused and physician-led population health management organization, offers top-notch healthcare services in the US. P3 Health Partners Inc. (NASDAQ:PIII) stated on August 3 that P3 Health Nevada is growing its presence in Nye County due to a recent purchase in cardiology and multi-specialty practice. Twelve hedge funds had investments in P3 Health Partners Inc. worth $13.2 million, based on the Insider Monkey database (NASDAQ:PIII).
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3. MicroStrategy Incorporated (NASDAQ: MSTR)
MicroStrategy Incorporated (NASDAQ: MSTR) provides enterprise analytics software and services worldwide. It is on the checklist of stocks with the Highest Short Interest in 2022 to consider investing. On November 1, MicroStrategy Incorporated (NASDAQ:MSTR) posted earnings for the third quarter of 2022, stating losses per share of $0.96. The revenue over the period was $126.36 million, down 1.3% compared to the same time last year and beating market estimates by $0.56 million.
4. Beyond Meat, Inc. (NASDAQ:BYND)
Beyond Meat, Inc. (NASDAQ:BYND) produces, markets, and sells plant-based meat products internationally and in the United States. It is among the Stocks with the Highest Short Interest to consider investing in. In addition to Ahold divisions, some Albertsons, and other retailers across the nation, Beyond Meat introduced Beyond Steak at Kroger and Walmart locations nationwide.
5. Revolve Group, Inc. (NYSE:RVLV)
Online fashion retailers Revolve Group, Inc. (NYSE:RVLV) serve customers both in the United States and abroad. It is on the Stocks with the Highest Short Interest checklist to consider investing in. Revolve Group, Inc. (NYSE:RVLV) announced earnings for the second quarter of 2022 on August 3. The company reported profits per share of $0.22, which was $0.09 below market expectations. The revenue for the time was $290.05 million, below market expectations by $2.83 million while increasing by 26.9% over the same period last year.
6. Bed Bath and Beyond
With just over 39%, this specialized retailer is one of the Stocks with the Highest Short Interest. Since the summer, it has been a favorite of the Wall Street Bets crowd, and the stock price rose to $30. It is currently trading at about $6 per share.
7. Beyond Meat
Beyond Meat is on the checklist of Stocks with the Highest Short Interest in 2022. Beyond Meat’s food processing business provides vegan sausage, chicken, and hamburger options. The short interest stands at 37% currently. Beyond Meat was trading at $100 per share a year ago. The stock is now trading at $14.50.
8. Big Lots
Big Lots is on the checklist of Stocks with the highest short interest to consider in 2022. This discount retailer’s shares traded at just over $51 in November 2021. It is currently worth $16.60, a 60% decrease in value. It presently has a close to 37% short interest.
9. Upstart Holdings
Upstart Holdings is on the checklist of Stocks with the Highest Short Interest. Consumer lender Upstart experienced a $390 stock price top in October 2021. The stock is currently down more than 90%, trading at $20.50. At 35%, the short interest is currently.
You might expect a stock that trades at less than $219 per share in software and programming to be included in the checklist of Stocks with the Highest Short Interest in 2022. However, the share price of MicroStrategy has decreased from $859 in November 2021. The current short interest rate is 34%.
11. Heron Therapeutics
One of the stocks with the Highest Short Interest, Heron Therapeutics, is now trading at $4 a share, down 60% over the last year, and has a 32% short interest. Sales of its new non-opioid pain reliever have been weak, which is a significant factor in the drop in value.
Investors in Evgo, a firm that provides electric charging stations, have experienced ups and downs over the past year due to the electric vehicle revolution. The stock has increased by slightly more than 2% throughout this time. But it is down 23% for the year thus far. The stock has a 31% short interest rate, because some investors believe the company can’t expand its network quickly enough.
13. Big 5 Sporting Goods
The sporting goods retailer’s stock price has dropped 46% this year, and short interest is at 31%, reflecting the fact that many investors don’t think the business can survive.
Carvana is among a new breed of used automobile businesses whose mission is to make the car-buying process more accessible. The increase in unpaid auto loans is Carvana’s issue; as a result, the short interest rate is 30%. The stock was going for $300 per share a year ago. It is already down more than 90% to $21.60.
This EV automaker’s stock hit its all-time high in June 2020 at $65.90. But then word spread that the Securities and Exchange Commission accused the founder of fraud. As short interest rose, the shares fell to $3.50. The short interest is currently close to 29%.
Trading stocks with the highest short interest is a high-risk tactic that, should the stock price rise, could lead to substantial losses. However, if the stock price declines further, investors stand to gain significantly. Before choosing any of these companies for your portfolio, as with any investment, complete your homework.