FIS Astec Analytics has released its latest weekly report on the hottest stocks among short sellers from the previous week. Here’s a look at how this week’s list shifted compared to last week’s list.
Top Pick: Sears Holdings
FIS Astec attributes much of the recent buying in Sears Holdings Corp SHLD 2.66% to insider buying, but short sellers also closed roughly 6 percent of open positions last week. Still, utilization dropped just 1 percent to 94 percent on the week, making the stock the hottest play among short sellers.
1. Credit Acceptance Corp
Credit Acceptance Corp. CACC 2.69% is heavily-exposed to the subprime auto lending market, and short sellers recognize the inherent danger of the business. FIS Astec reports that the number of outstanding short shares has increased 43 percent in the past two weeks and volumes have hit a 12-month high.
2. Cara Therapeutics
FIS Astec reports short interest as a percentage of Cara Therapeutics Inc CARA 2.41% shares available has rarely fallen below 80 percent since September. The firm predicts that institutional investors may finally be taking profits on their long positions.
3. Omeros Corp
Omeros Corporation OMER 0.37% short sellers were burned last week when positive trial data sent the share price soaring 31 percent. Still, the company’s pattern of quarterly earnings losses has kept it among the most popular stocks for short sellers.
4. JC Penney
Fis Astec says short sellers recognize what they see as a secular decline in Sears and J C Penney Company Inc JCP 2.18% and are willing to wait out their positions for the long haul. Borrowing costs jumped 38 percent for the popular short last week, but short sellers have also profited plenty of gains to combat the fees during the stocks 42 percent decline in the past year.
5. British American Tobacco
British American Tobacco PLC (ADR) BTI 0.36% shorts have had…
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