The GameStop (NYSE:GME) short-squeeze saga has turned the spotlight on small and mid-cap stocks with a high level of short interest. Heavily shorted stocks could be targeted for so-called social trades by retail investors, who look to set off sharp price increases in these names and put pressure on short-sellers, who need to buy shares they sold short in order to close their positions. In our theme on Stocks With High Short Interest, we have picked companies that have a short interest standing at over 20% of the total float, have a market cap of over $1 billion, and a stock price of $15 per share or less, potentially making them of interest to retail traders. Below is a bit more about these companies.
Vaxart (VXRT) is a biotech company that is looking to develop a unique Covid-19 vaccine that can be administered via tablets, eliminating the need for a needle-based injection. Investor interest in the stock has risen in anticipation of its phase 1 data readout, which is likely to happen in the coming days. The stock has roughly doubled year-to-date and short interest stood at about 34% as of Friday.
Macy’s (M), a leading department store chain, was badly impacted by Covid-19. However, the company is looking to streamline its operations to focus on its best performing stores and its growing e-commerce operations, while shutting down stores in many small cities. The stock has gained about 34% year to date, with short interest standing at about 29%.
Sorrento Therapeutics (SRNE), a clinical-stage biotech company that develops treatments for cancer and neurodegenerative diseases has seen its stock rally by about 85% since the beginning of January, partly due to positive data for its experimental STI-2020 antibody therapy with the new Covid-19 variants identified in the U.K. and South Africa. Short interest in the stock stood at about 32%.
Inovio Pharmaceuticals (INO), a small biotech company that develops synthetic DNA products for treating cancers and infectious diseases. While stock saw a rally in the first half of 2020, it has corrected sharply since, as the company’s Covid-19 candidate lagged behind other players and was not selected for the federal funding for vaccine development. The vaccine is currently in phase 2 clinical trials. However, the stock has done well this year, rising by 44% since early January. Short interest stands at about 34%.
Gogo (GOGO) provides in-flight broadband Internet and other connectivity services. The company has been streamlining its operations, by selling its commercial aviation business in a move that should enable it to strengthen its balance sheet and focus on the business aviation market. The stock is up by about 40% year to date and roughly 44% of the company’s float is currently short.
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