Daily Traders Edge

These Are the Companies Wall Street Is Betting Against

May 03
10:05 2021

Every two weeks, the short interest data on all publicly traded stocks is released to the public. Short sellers bet that stocks will drop, and they borrow shares in the public corporation they are shorting, hoping to replace those shares at a less expensive price in the future. The action can be risky. A rising stock price means the shares have to be replaced at a much higher price.

The most recent period for which short interest was released covers the two weeks that ended April 15. Several companies had more than 15% of their total shares shorted or borrowed anticipating a price drop. This figure is extremely high compared to most stocks.

Bed Bath & Beyond Inc. (NYSE: BBBY) has a short position that is 21.7% of its shares outstanding. The retailer has been rocked by poor sales, brought on largely by the pandemic. It is also in a highly competitive part of the retail market, which is the sale of household goods like bedding, towels and cookware.

Continue Reading at 24/7 Wall Street

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