It's great to see interest in "most shorted stocks" within the community, as this can be a powerful indicator for potential market movements.
When we talk about "most shorted stocks," we're generally referring to companies where a significant portion of their publicly available shares (the float) has been sold short. This is often quantified by the Short Interest as a Percentage of Float. A high percentage here indicates strong bearish sentiment from a segment of the market, but it can also signal the potential for a short squeeze if positive catalysts emerge.
Fintel provides comprehensive data to track these trends:
- Short Interest % Float: This metric shows the number of shares sold short relative to the total number of shares available for trading. Fintel sources this official data directly from exchanges like NASDAQ and NYSE, as well as FINRA, with updates typically published twice monthly.
- Days to Cover: This indicates how many days it would take for short sellers to buy back all borrowed shares, given the stock's average daily trading volume. A higher number suggests that covering positions could take longer, potentially exacerbating a short squeeze.
- Short Borrow Fee Rates: These are the annualized interest rates short sellers pay to borrow shares. High borrow fees can signal strong demand to short a stock, but also increase the cost for short sellers, potentially pressuring them to cover positions more quickly.
- Short Squeeze Score: Fintel also offers a proprietary Short Squeeze Score, which is a multi-factor quantitative model designed to identify companies with the highest risk of experiencing a short squeeze. This score considers short interest, float, borrow fees, and other metrics.
You can find leaderboards and detailed short interest data for individual stocks on Fintel, including specific short squeeze leaderboards for various markets. This data can offer valuable insights into market sentiment and potential volatility.
