Benzinga - by Chris Katje, Benzinga Staff Writer. Potential short squeeze plays gained steam in 2021, continued throughout 2022, and remain a new focus of traders looking for the next huge move.
High short interest and steep borrowing costs are among the common traits that could lead to a short squeeze.
Here’s a look at the top five short squeeze candidates and several stocks to watch this week based on the Fintel short squeeze leaderboard.
1. Blue Apron Holdings (NYSE: APRN) ranks first on the short squeeze leaderboard for a second straight week. Data shows 33.2% of the float short, in line with last week’s report. The cost to borrow on shares is 86.3%, down from last week’s 99.0%. The meal delivery company has been a popular short-squeeze candidate in recent years.
2. Aurora Acquisition Corp (NASDAQ: AURC) moves up one position to rank second for the week. Data shows 11.4% of the float short, in line with last week’s report. The cost to borrow on shares is 426.2%, up from last week’s 327.5%. The SPAC announced a merger with Better.com in 2021 and has seen several delays since the announcement. Delays and shareholder votes on the merger and extensions have seen heavy redemptions, leading to a lower float of under one million shares for the company.
3. Healthcare Triangle Inc (NASDAQ: HCTI) rejoins the top five short squeeze candidates after moving down the leaderboard in the last week. The stock moves up 19 places to the third spot. The stock ranked second on the leaderboard two weeks ago. Data shows 9.0% of the float short and a cost to borrow of 435.3%.
4. Intuitive Machines Inc (NASDAQ: LUNR) drops two positions to rank fourth for the week. Data shows 6.6% of the float short. The cost to borrow on shares of the space company is 205.7%, up from last week’s 189.9%.
5. Getty Images Holdings (NYSE: GETY) ranks fifth for a second straight week. Data shows 183.5% of the float short, in line with last week’s report. The cost to borrow on shares is 60.8%, down from last week’s 67.5%. Since going public via a SPAC merger, the content creator and image marketplace company has been a popular short-squeeze target, previously topping this list.
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Stocks to Watch: Outside the top five short-squeeze candidates, several other names are making big moves. Here are five stocks rising on the charts with significant short percentages or borrowing costs.
Apollomics Inc (NASDAQ: APLM) ranks sixth on the leaderboard, just outside the top five candidates. The clinical-stage biotechnology company has 19.9% of the float short and a cost to borrow of 668.4%, the highest of stocks tracked on the Fintel short squeeze leaderboard. The stock previously ranked second on the leaderboard in July.
Guardforce AI (NASDAQ: GFAI) moves up seven positions to rank eighth for the week. Data shows 12.1% of the float short and a cost to borrow of 135.2%.
JOANN Inc (NASDAQ: JOAN) moves up 18 positions on the leaderboard to rank 12th. Data shows 19.6% of the float short and a cost to borrow of 21.4%. The stock, previously spotlighted in this report, is making strides toward the top 10.
Eagle Bulk Shipping (NYSE: EGLE) moves up 16 positions to rank 13th on the leaderboard. Data shows 23.7% of the float short and a cost to borrow of 2.8%.
Polar Power Inc (NASDAQ: POLA) moves up 42 positions to rank 20th on the leaderboard, in one of the biggest jumps of the week. Data shows 8.2% of the float short and a cost to borrow of 44.1%.
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