The meme stock rally may have ebbed, but GameStop has once again emerged as a short-interest favorite in the market. As of the middle of the month, short interest in GameStop soared by 6% to more than 68 million shares, representing over 25% of its float. This resurgence came after “Roaring Kitty,” the retail investor behind the 2021 short squeeze, made a comeback online after three years, causing shares to skyrocket by more than 92% for the month. Short selling, a high-risk strategy used by hedge funds and retail investors, involves borrowing shares to sell them and repurchasing them at a lower price. A short squeeze occurs when a stock price rises rapidly, leading short-sellers to buy back shares to cover their shorts and minimize losses.
Symbotic, a warehouse automation company, has seen its short interest as a percent of float reach around 30%. While the company’s shares have experienced a nearly 20% decline year-to-date and dropped by over 9% in the current quarter, the stock managed to climb 6.7% month-to-date. Analysts remain optimistic about Symbotic’s future, with a majority of them rating the stock as a buy or strong buy and forecasting a potential 37.2% upside.
Electric-vehicle manufacturer Lucid has around 29% of its floating shares sold short. Despite this, the company’s shares have surged more than 8% in May and rose an additional 1.2% recently. Analyst sentiment towards Lucid is mixed, with nearly 70% of analysts maintaining a hold rating on the stock. Only a small percentage of analysts have a buy or overweight rating on Lucid’s shares.
Retailer Kohl’s is another company attracting short interest, with nearly 34% of its float being shorted. The company is set to announce its fiscal first-quarter earnings soon. In the past, traders were disappointed by Kohl’s revenue falling short of analysts’ estimates in the fiscal fourth quarter. Despite a 7% decline quarter-to-date, Kohl’s shares have surged by 13.1% over the past month.
While the meme stock frenzy may have subsided, the resurgence of shorted stocks like GameStop, Symbotic, Lucid, and Kohl’s indicates ongoing volatility in the market. With short interest playing a significant role in these companies’ stock movements, investors and analysts alike are closely monitoring these stocks for potential short squeezes and market fluctuations.