Traders targeting heavily shorted stocks are looking to play one of two sides: betting on a company's downfall or hunting for a short squeeze.Here is a breakdown of why these stocks attract so much attention and a look at the current market landscape.LCID stock is heavily shorted. See the chart and price action here. Why Do Stocks Get Heavily Shorted?Investors and traders often maintain a high level of short interest whenever a stock is overvalued.They are betting that the company faces significant risks—su ...

NEW YORK, Jan. 27, 2026 (GLOBE NEWSWIRE) -- At the end of the settlement date of January 15, 2026, short interest in 3,515 Nasdaq Global MarketSM securities totaled 15,349,969,813 shares compared with 15,183,396,236 shares in 3,498 Global Market issues reported for the prior settlement date of December 31, 2025. The mid-January short interest represents 2.88 days compared with 2.83 days for the prior reporting period. Short interest in 1,669 securities on The Nasdaq Capital MarketSM totaled 3,478,325,627 sh ...

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Core Viewpoint - The article discusses the phenomenon of heavily shorted stocks, highlighting the reasons traders engage in short selling and the potential for short squeezes to create significant price movements in the market [2][3][4]. Group 1: Reasons for Heavy Shorting - Stocks become heavily shorted when experienced traders and institutional investors believe the company is fundamentally overvalued, anticipating a decline in its price [2]. - High short interest indicates a strong conviction among professional traders that the company faces serious risks [2]. Group 2: Short Squeeze Dynamics - Bullish traders, often retail investors, see high short interest as an opportunity for rapid gains through a short squeeze, which occurs when rising stock prices force short sellers to buy back shares, creating a feedback loop that drives prices even higher [3][4]. - The volatility associated with short squeezes can lead to returns that significantly exceed typical stock movements in a short time frame [4]. Group 3: Most Shorted Stocks - As of January 16, 2026, the top 10 most shorted stocks include: - Choice Hotels International, Inc. (CHH) with a short interest of 56.33% - Lucid Group, Inc. (LCID) at 54.45% - Avis Budget Group, Inc. (CAR) at 52.38% - Other notable companies include PureCycle Technologies, Inc. (PCT), Under Armour, Inc. (UAA), and Revolve Group, Inc. (RVLV) with short interests ranging from 39.22% to 41.89% [5][6][7].

Summary of Key Points Core Viewpoint - The total short interest in Nasdaq securities has increased slightly, indicating a growing bearish sentiment among investors as of December 31, 2025 Group 1: Nasdaq Global Market - Short interest in 3,498 Nasdaq Global Market securities totaled 15,183,396,236 shares at the end of December 31, 2025, up from 15,012,659,234 shares in the previous period [1] - The December short interest represents an average of 2.83 days, a decrease from 2.90 days in the prior reporting period [1] Group 2: Nasdaq Capital Market - Short interest in 1,671 securities on The Nasdaq Capital Market totaled 3,382,557,383 shares at the end of December 31, 2025, compared to 3,369,741,795 shares in the previous period [2] - This represents an average daily volume of 1.27 days, slightly down from 1.29 days in the prior reporting period [2] Group 3: Overall Nasdaq Securities - Total short interest in all 5,169 Nasdaq securities reached 18,565,953,619 shares at the December 31, 2025 settlement date, an increase from 18,382,401,029 shares in the previous period [3] - This reflects an average of 2.31 days of daily volume, down from 2.36 days in the prior reporting period [3] Group 4: Short Sale Definition - Open short interest positions reported for each Nasdaq security reflect the total number of shares sold short by all broker/dealers, regardless of their exchange affiliations [4]

Core Viewpoint - Investors are increasingly focusing on heavily shorted stocks, either to capitalize on further declines in value or to benefit from potential short squeezes [1][3]. Group 1: Characteristics of Heavily Shorted Stocks - A stock is considered "heavily shorted" when a significant number of traders and institutional investors believe it is fundamentally overvalued, leading to expectations of a price decline [2]. - High short interest often indicates a strong conviction among professional traders that the company faces serious risks, while retail traders may see it as an opportunity for rapid gains through a short squeeze [3]. Group 2: Short Squeeze Dynamics - A short squeeze occurs when a stock's price unexpectedly rises, forcing short sellers to buy back shares to cover their positions, which creates a spike in demand and further drives up the price [4]. - The volatility associated with a short squeeze can result in returns that significantly exceed typical stock movements within a short time frame [4]. Group 3: Most Heavily Shorted Stocks - As of December 29, the following stocks are the most heavily shorted, with market caps above $2 billion and free floats above 5 million: - Lucid Group, Inc. (NASDAQ:LCID) - 54.51% - Choice Hotels International, Inc. (NYSE:CHH) - 50.20% - Avis Budget Group, Inc. (NASDAQ:CAR) - 48.80% - Revolve Group, Inc. (NYSE:RVLV) - 43.14% - Medical Properties Trust, Inc. (NYSE:MPW) - 37.13% - MARA Holdings, Inc. (NASDAQ:MARA) - 36.23% - Hims & Hers Health, Inc. (NYSE:HIMS) - 35.22% - TransMedics Group, Inc. (NASDAQ:TMDX) - 35.11% - Kohl's Corporation (NYSE:KSS) - 34.27% - Northern Oil & Gas, Inc. (NYSE:NOG) - 33.27% [5][6].

Core Insights - Atlas Copco experienced a significant increase in short interest, rising by 70.5% in December to a total of 150,816 shares as of December 15th, compared to 88,447 shares on November 30th [2] - The company's stock opened at $18.28, with a 12-month low of $13.41 and a high of $18.55, and it has a market capitalization of $89.12 billion [3] - Atlas Copco reported earnings per share (EPS) of $0.14 for the last quarter, meeting consensus estimates, with revenue of $4.43 billion, slightly above the expected $4.42 billion [4] Financial Performance - The company has a P/E ratio of 32.64 and a P/E/G ratio of 9.19, indicating its valuation relative to growth [3] - Atlas Copco's net margin stands at 16.08% and return on equity at 25.42%, reflecting strong profitability metrics [4] - The debt-to-equity ratio is 0.27, with a current ratio of 1.52 and a quick ratio of 1.09, suggesting a solid financial position [3] Analyst Ratings - Barclays upgraded Atlas Copco from "hold" to "overweight," while Citigroup maintained a "buy" rating [5] - UBS downgraded the stock to "sell," and BNP Paribas upgraded it to "outperform," indicating mixed sentiments among analysts [5][6] - The consensus rating for Atlas Copco is "Hold," with three analysts rating it as Buy, two as Hold, and one as Sell [6] Company Overview - Atlas Copco is a Sweden-based industrial group focused on developing, manufacturing, and servicing equipment for various industries [7] - The company's core activities include compressed air and gas systems, vacuum solutions, construction and mining equipment, and industrial tools [7][8] - Key product categories encompass air compressors, gas generation systems, industrial vacuum pumps, generators, and automated assembly systems [8]

Company Overview - Avon Protection plc is a manufacturer of advanced respiratory protection and personal protective equipment for military, first responder, and industrial markets [3] - The company develops and supplies a range of gas masks, respirators, filters, and related equipment designed to guard against chemical, biological, radiological, and nuclear (CBRN) threats as well as airborne particulates encountered in firefighting and industrial applications [3] Product Portfolio - The product portfolio includes battle-focused CBRN protective masks, powered air-purifying respirators (PAPRs), emergency escape hoods, and collective protection systems [4] Market Performance - As of December 15th, Avon Protection saw a large decrease in short interest, totaling 600 shares, a decrease of 67.3% from the November 30th total of 1,835 shares [2] - The short-interest ratio is presently 0.8 days based on an average daily volume of 762 shares [2] - Avon Protection opened at C$23.40, with a 1-year low of C$16.74 and a 1-year high of C$28.10 [2] - The firm has a fifty-day simple moving average of C$24.52 and a 200-day simple moving average of C$25.69 [2]

Group 1 - Atresmedia Corporación de Medios de Comunicación experienced a significant increase in short interest, rising by 116.4% from 640 shares on November 30th to 1,385 shares by December 15th [2] - The average daily trading volume is 2,052 shares, resulting in a days-to-cover ratio of 0.7 days [2] - The stock opened at $5.60, with a fifty-day moving average of $6.09 and a 200-day moving average of $6.13 [3] Group 2 - Atresmedia is a leading Spanish multimedia group that operates a diverse portfolio of free-to-air television channels, including flagship networks Antena 3 and laSexta [4] - The company also manages thematic channels such as Neox, Nova, Mega, and Atreseries, catering to various audience segments with a range of content [4] - In addition to television, Atresmedia operates a network of radio stations, including Onda Cero, Europa FM, and Melodía FM [5]

Company Overview - Cannabix Technologies Inc. is a Canada-based developer of biosensor technologies focused on the rapid, non-invasive detection of cannabis impairment [4] - The company's flagship product is a handheld breathalyzer device designed to identify recent use of tetrahydrocannabinol (THC) within minutes of exhalation, providing a tool for law enforcement and public safety organizations [4] Financial Performance - As of December 15, Cannabix Technologies had a market capitalization of $51.33 million, with a PE ratio of -21.20 and a beta of 0.65 [3] - The stock opened at $0.42, with a twelve-month low of $0.20 and a high of $0.50 [3] - The firm's 50-day moving average price is $0.39 and its 200-day moving average price is $0.41 [3] Short Interest Activity - There was a significant increase in short interest for Cannabix Technologies during December, with total short interest reaching 52,257 shares, a growth of 105.8% from 25,390 shares on November 30 [2] - Currently, 0.0% of the shares are short sold, and the short-interest ratio is 0.2 days based on an average daily trading volume of 221,578 shares [2][2]