Highest Short Interest Stocks With Borrow Rate (updated today) The updated list of the highest short interest stocks with borrow rate are below: PXMD Our daily ratings and market update email newsletter. If it is high, it might be a sign that the stock is in danger of going down in price. Ultimately, there is no one-size-fits-all answer to the question of what stock has the highest borrow rate. At the same time, shareholders that own a hard-to-borrow stock can earn income by lending out their shares to short sellers. With a 39% Short Interest, Could WeWork Ignite a Short Squeeze? This includesvoting rights, the right to dividends, and the rights to any other distributions. When you short stock you're actually borrowing the shares from your broker and then hoping to return those borrowed shares back to the broker at a lower price. Short Squeeze Stocks Alert: 5 Hot Stocks With HIGH Cost to Borrow Fees, Penny Stocks How to Profit Without Getting Scammed, 5 Hypergrowth Stocks With 10X Potential in 2023, 7 Smart Stock Picks for Cautious Investors, Louis Navellier and the InvestorPlace Research Staff, Housing Market Crash Alert: Mark Your Calendars for Feb. 28. Out of all the stocks that had at least $100 million in short interest, Carvana (NYSE:CVNA) rewarded short sellers the most. However, short sellers are paying astronomically high fees to bet against a handful of popular stocks to short. 0, Unsualinvestor There are a few reasons why the hard to borrow indicator can be a bullish sign. Once that request is accepted, the trader sells the shares at the market price. Here are the stocks on the market with the It will vary from lender to lender and security to security. The trading strategy is motivated by the belief that the prices of a security will drop, providing an opportunity for the stocks to be repurchased later and for the difference in price to be taken as profit. When stocks have a high short interest rate that indicates that investors believe their share prices will decline soon. Furthermore, short selling can also result in a vicious cycle of losses. 1125 N. Charles St, Baltimore, MD 21201. UK house prices fall year-on-year for first time since June 2020; consumer credit doubles as people borrow more on credit cards amid cost of living crisis On the Companies can suffer from poor business plans, increased competition, and lousy management that may not be accurately reflected in its stock price. Click here for options trades from Benzinga, Let's Take A Look At This Weeks Top Performing Sectors 5/5, Insurance Stock Gainers And Losers In Tuesdays Premarket Session 5/4. Investopedia does not include all offers available in the marketplace. Beyond Meat, AMC and MicroStrategy top the list. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. There are a few different reasons why the borrow rate might be high. Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week. This is typically done for the purposes of short selling. Are Investors Short a Dividend-Paying Stock Entitled to the Dividend? Higher borrowing costs depress consumer and business spending. These are simply the number of shares that are available to short for a given stock. This can result in a sharp drop in the securitys price when the bubble bursts. Is Stellantis Stock a Value Investors Dream? Short selling also provides a form of defense against financial fraud by bringing to light companies that have tried to inflate their performance and valuation. All rights reserved. One reason could be that the economy is in a recession and interest rates are high overall. an upcoming earnings report or recent analyst revision). Short interestrefers to the total number of shares sold as a percentage of a companys total outstanding shares. Liminal BioSciences Inc (NASDAQ: LMNL ), 80.4% borrow fee. By continuing to browse the site you are agreeing to our use of cookies. During early February, GME was ITB with a rate near 50%. This, in turn, can lead to a decline in the stock market. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. Borrow fees can be detrimental to traders betting against costly stocks. When a security is transferred as part of the lending agreement, all rights are transferred to the borrower. Unlike an investor who holds stocks for their value and the income they produce, traders capitalize on an anticipated decline in price by trying to sell high and buying low. The stock loan fee is an often overlooked cost associated with shorting a stock. What Are the Risks Involved With Short Selling? Highest Borrow Rate Stocks. This can be done through a brokerage firm or through a lending institution. (844) 978-6257. In fact, short sellers should consider avoiding these expensive stocks all together unless they have a good reason to believe there is significant downside ahead in the immediate future. Short selling also requires constant monitoring as holding an unprofitable position for long may not be a viable strategy for many investors. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Which Dollar Store, If Any, is Worth Your Investment Dollars? If the collateral is cash, the interest paid by the stock lender on it to the borrower may offset part of the stock loan fee. WebThe HTB rate shown is an annualized rate. Short selling is an ideal trading strategy for traders who think short term as it requires people to keep a close eye on trading positions. Eddie Pan specializes in institutional investments and insider activity. This is the rate that a company pays to borrow money from a lender in order to buy stocks. Of course, it is important to remember that implied borrowing costs are just that implied. According to S3 Partners, shorted stocks returned 30.8% last year, outperforming the benchmark index by a wide margin. Feb 18, 2023 With that in mind, lets take a look at the highest borrow fees for the top five stocks with short interest over $100 million as of Dec. 30: Beyond Meat: 102.57%. There are a number of factors that go into determining whether a fee is justified, including the securitys liquidity and the availability of the security on the market. Short borrow fees can be a significant expense for investors, so its important to understand when they are and arent justified. All rights reserved. Ashort saleinvolves the sale of borrowed securities. When stocks have a high short interest rate that indicates that investors believe their share prices will decline soon. The company surged into the top spot after its fee jumped 69% in the last two weeks, Ihor Dusaniwsky, the managing director of predictive analytics at S3, wrote in a Tuesday note. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Clover Health has 143.48M in outstanding shares and is down 1.43% this week. A buy stop order is used to trigger a market order to buy stock once the price rallies back to the stock price entered. He writes for InvestorPlaces Todays Market team, which centers on the latest news involving popular stocks. Stocks with a high short interest ratio are usually at risk of short squeeze, a phenomenon that is most of the time associated with unexpectedupward price spikes. Lorem ipsum dolor sit amet, consectetur adipiscing elit. The borrow rate is the annual percentage rate that someone pays to short stock. When its high, it suggests that investors are bullish on the security and believe that it will continue to rise in value. Another reason could be to cover a short position. Free Theme By. This fee is shown as an annual percentage rate (APR). Its important to keep in mind that a high short borrow fee rate does not always mean that a fee is unjustified. The borrow rate is usually expressed as a percentage of the loan Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. WebBetting against some company stocks can be more expensive than owning them. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This can lead to a spiralling effect, with the short seller continually buying back the shares at higher and higher prices, resulting in ever-increasing losses. Get daily stock ideas from top-performing Wall Street analysts. Stocks with a high degree of short interest are more difficult to borrow than a stock with low short interest, as there are fewer shares to borrow. Use this information at your own risk. How to Understand the Process of Short Selling with Examples, Why Short Interest is a Key Metric for Short Sellers. 3, Unsualinvestor Beyond Meat Inc Second, you can use a stock screening tool like the one offered by Morningstar. This table shows the interest rate that must be paid by a short seller of US:HITI to the lender of that security. Email feedback@benzinga.com with your thoughts. In the stock market, the interest rate is referred to as the borrow rate. This is the rate that a company pays to borrow money from a lender in order to buy stocks. Brokers like E-Trade, Interactive Brokers, Fidelity and Charles Schwab offer securities lending programs in which clients can simply opt into a program to passively lend out the shares they own in their portfolio. S3 Partners analyst Ihor Dusaniwsky recently said stock lending is a market based on simply supply-demand economics, meaning stocks that are in high demand among short sellers can see borrow fees spike quickly. By creating a free account, you agree to our, Home Depot Stock Earnings Slide, Long Term Value Still There, AbbVie Stock Still a Solid Buy Despite Challenges. Long shareholders can take advantage of heavy short selling in their securities by lending out their in demand shares and earning stock loan fees by lending out their fully paid for shares, Ihor Dusaniwsky, analyst at financial analytics form S3 Partners, said this week. BP Prudhoe Bay Royalty Trust (NYSE: BPT), 35.1% borrow fee. The borrow rate is usually expressed as a percentage of the loan amount. The lender wants to make sure they are compensated for the risk they are taking by lending money, while the borrower wants to make sure they are not paying too much for the use of someone elses money. View publication schedule for short interest reports, Zoom Video Communications moves up on mixed results but it may be too soon for a major rally. A stocks daily borrow fee is its borrow rate multiplied by the market value of the security divided by 365 days. This is a difficult question to answer definitively as borrow rates can vary greatly depending on the particular security in question and the lending institutions involved. Beyond Meat Inc (NASDAQ: BYND ), 115.1% fee. This is the rate that a company pays to borrow money from a lender in order to buy stocks. Expensive Stocks To Borrow Here are the five most expensive stocks to short and the five most profitable stocks to lend, according to S3: 1. He calls his broker and asks the broker to find him 100 shares of the company to borrow for a short sale. New Age Beverages Corp (NASDAQ: NBEV), 40.7% borrow fee. GameStop stock borrow fees, meanwhile, averaged out to about 8% (annualized) during the month of November. The financial website ranks stocks on a scale from 0-100. When short selling, traders should have a well-thought-out plan, a solid understanding of the stock market and individual stocks, and the discipline to stick to their plan even when things go wrong. To see all exchange delays and terms of use please see Barchart's disclaimer. High Short Interest Stocks HighShortInterest.com provides a convenient sorted database of stocks which have a short interest of over 20 percent. The remaining top of the list contains many penny stocks and micro caps that have a market cap of less than $50m. When the stock's price rises, the short seller must buy back the borrowed shares to close out their position. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. After all, a short seller could end up profiting from the woes of a company even while company stockholders and employees livelihoods are being destroyed. quotes delayed at least 15 minutes, all others at least 20 minutes. Next, you take the per share collateral Root Inc has 59.66M in outstanding shares and is up 2.10% this week. As retail traders have become more sophisticated and online trading platforms have offered more features, short selling has become an increasingly popular way for traders to profit off of a stocks downturn. High borrow fees can also carry some useful information for contrarian traders as well. CLVS stock loan recalls are also hitting the street in size," he wrote. Aug 26, 2022 Days to cover measures the expected number of days needed to close out a company's shares outstanding that have been shorted. This page lists stocks that currently have the highest levels of short interest. Cracker Barrel Stock: Range Bound, but High Yield For 2023, This Small Company Is Set To Drive Future Of Lithium Batteries, What Are Blue Chip Stocks? There is no definitive answer as to what constitutes a high short borrow fee rate. The rate of interest that a company has to pay is known as the borrow rate. If the borrow rate is high, it means that it is expensive for companies to borrow money, and this can be a sign that the stock market is in trouble. The rate of a short borrow fee is typically expressed as a percentage of the securitys value. Imagine having to pay over 1000% per year to maintain a short position. High borrowing fees are a red flag for a stock. WebThis leaderboard shows a list of companies with the highest/lowest Short Borrow Rate. Clover Health Investments Corp - 35.23%. Autozone Or Advance Youve Got A Winner With Auto Parts, Lucira Stock Jumps over 250% on FDA Approval, Beware Chapter 11. Shares Outstanding: 72.51M: Shares Float: 50.26M: Institutional Ownership: 20.70%: Short Float: 0.94%: Updated: 2023-02-28 Notes: We provide important market data in real time every market day. Heres a list of 10 stocks with borrow rates of at least 30% as of Dec. 11, according to S3. Additionally, businesses that have taken on large amounts of debt may struggle to repay their loans, which could lead to bankruptcies and job losses. 21, Unsualinvestor Short selling also comes with a number of costs that can eat into ones returns significantly. With that in mind, lets take a look at the highest borrow fees for the top five stocks with short interest over $100 million as of Dec. 30: Beyond Meat tops the list with a CTB fee thats more than double AMCs fee in second place. Trader expects the stock of company XYZ, currently priced at $25, to fall in the future. A trailing buy stop order, on the other hand, adjusts the trigger price for taking profits as the stock price moves lower. Fintel is a registered trademark. A higher CTB fee will lower the chances of a profitable short trade. Two Wall Street Legends will reveal their #1 recommendations and full "roadmap" for navigating the coming AI revolution. During the financial crisis, investors were barred from short-selling stocks of banks and other financial institutions. Finally, it's worth noting that short selling is a more complex and challenging strategy than simply buying stocks. High interest rates make it more difficult or expensive to borrow money. We are committed to guiding and supporting you on your path to financial freedom and enduring success. A high borrow rate for a stock is a warning sign that the demand to short sell that stock is high. Borrow Rate. The fake meat company has been on a steady decline since its initial public offering (IPO) in 2019. A stock is said to be hard-to-borrow when the number of buyers who want to short the stock outnumbers the number of sellers who want to borrow the stock. Sign up below to get this incredible offer! All rights reserved. Get short term trading ideas from the MarketBeat Idea Engine. By clicking Sign up, you agree to receive marketing emails from Insider First, it suggests that investors are confident in the security and believe that it will continue to rise in value. And when the short shares available gets to zero, well, lots of interesting things can happen. 2015-2023 Fintel Ventures LLC. 2022 marked a successful year for short sellers, as the S&P 500 declined by about 19%. I compiled a list of stocks that With that in mind, the firm crunched the numbers through September 30 for the stocks with the highest borrow fee on a percentage basis. If youre considering borrowing a security, its important to understand the fee structure involved. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. What is considered high short borrow fee rate? While right now, it's the only stock that costs more than $1 million per day to bet against,that could change soon, said Dusaniwsky. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand thatInvestorPlace.comswriters disclose this fact and warn readers of the risks. "Or an unexpected increase in borrow rates can turn a home-run trade into a run of the mill single.". All rights reserved. First, it could indicate that investors are bullish on the stock's future performance, meaning that they expect the stock's price to rise. The higher the borrow rate, the more expensive it becomes to short the stock, and the lower the potential profits from the trade. The screener pulls U.S. stocks from both the New York Stock Exchange (NYSE) and the Nasdaq. Aug 28, 2022 Ultimately, a higher borrowing rate can lead to a slowdown in economic growth and increased unemployment. No one could do that for long. Also, assume that the stock loan fee is 3% per year. This stock has 17.69M in outstanding shares and is up 3.16% this week. However, it's essential to carefully consider the potential consequences of shorting, especially in stocks with high borrow rates, to minimize the risk of significant financial losses. The borrow rate is an important metric to watch for investors, as it can indicate whether a company is able to borrow money at a low interest rate or not. In conclusion, short selling can be a potentially lucrative strategy for traders and investors who understand the risks and consequences. The degree of short interest, therefore, provides an indication of the stock loan fee amount. Whatever the reason short selling requires solid research, good intuition, and excellent timing if a trader is to profit from speculation. These transactions occur when the securities borrower believes the price of the securities is about to fall, allowing them to generate a profit based on the difference in the selling and buying prices. The consumer discretionary sector came in second with a short interest of $137.43 billion. A high borrow rate can be a sign of financial distress for a company and may indicate that the company is not able to borrow money at a reasonable price. Workhouse Group Inc has 123.51M in outstanding shares and is down 0.54% this week. Short selling, or the practice of betting that a stock's price will fall instead of rise, can be an expensive business. 2021 Benzinga.com. 2023 InvestorPlace Media, LLC. Margin Account: What Is the Difference? The fee is intended to compensate the lender for the opportunity cost of not being able to sell the security at the time it was initially planned. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. A stock loan fee is charged pursuant to a Securities Lending Agreement (SLA) that must be completed before the stock is borrowed by a client (whether a hedge fund or retail investor). It's likely that the stock's borrow fee could climb even higher, Dusaniwsky said. On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. For example, if one wishes to short sell 100 shares of a company going for $10 a share, one will need about $500 in a margin account. One of the major differences is that buying and holding a stock is free outside of the commission paid on the trades. Most shares held by brokerage firms on behalf of their clients are in street name, which means that they are held in the name of the brokerage firm or other nominee rather than in the name of the client. As soon as the broker lends the stocks, Mr. Once the transaction is complete, the profit on the trade will be $500. NUZE stock recently climbed from a low of $1.95 to a high of $7.60 before settling down at $3.75 last week. Breaking news Elon Musk is Building a Case against the How CNBC Jim Cramer lied and destroyed a promising canc AMC's Cost to Borrow Skyrockets to 731.8% - Short Selle Citadel Securities: The Shadiest Hedge Fund Since Berni Trading212: The App That Betrayed Its Users and Sided w What Is Bitcoin? Short sellers use screening tools to identify potential short candidates whose price might have run ahead of fundamentals and are destined to trade lower. Cash Account vs. On March 2, This AI "Roadmap" Goes Live. Aug 29, 2022 This compensation may impact how and where listings appear. Short sellers aregenerally reviledfor trying to benefit from a bad situation. Stock loan fees may The standard margin requirement is 150%, which means one must set aside 50% of the value of the stock at the time of borrowing in that account. First, you can check the borrow status of a stock on FINRAs website. In this case, shorting the stock could be a risky move, as a sudden rally in the stock's price could result in significant losses for the short seller. All rights reserved. Is Amazon a blue chip stock or does it fit into a different category? For example, traders are currently paying a 109% borrow fee to short shares of Clovis Oncology, according to data from financial analytics firm S3 Partners. What Does Days to Cover Mean, and How Do Investors Use It? This is because a high borrow rate means that companies are having a hard time getting money, and this can lead to a slowdown in the economy. Depending on the severity of the rate increase and the situation of the borrowers and lenders, a variety of outcomes can occur. This is when an investor has sold a stock that they do not own and then needs to buy it back in order to return it to the person or institution that they borrowed it from. The interest rate is usually determined by the lender and the borrower. Feb 22, 2023 Pagaya Technologies (. Liminal BioSciences Inc (NASDAQ: LMNL), 80.4% borrow fee. 2, Unsualinvestor The table below plots the standardized 30 and 90 day borrow rates for the premier meme stock, GameStop (GME). Faraday Future In addition, a high CTB fee may also be indicative of a short squeeze. Frontier Communications Corp (NASDAQ: FTR), Short Sellers Double Down On Twilio Following Rally, Why A Beyond Meat Short Squeeze May Be 'Just Around The Corner', View More Analyst Ratings for BYND View the Latest Analyst Ratings, Why Slack's IPO Investor Sentiment Might Be A Good Omen, Beyond Meat Taking A Bite Out Of Short Sellers. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. WebHighest Cost To Borrow; Highest Short Interest % Float; OWNERS Retail Ownership Funds Flow Options Flow - Latest Day (Stocks) Options Flow - Latest Day (ETF) However, by looking at the implied repo rate, we can get a general idea of the stocks with the highest borrowing costs. Intelligent Systems Corporation (NYSE: INS), 30.0% borrow fee. Energous Corp (NASDAQ: WATT), 45.5% borrow fee. After being involved in the industry since 2019, he is now a strong supporter of decentralized technologies and a fair stock market. Learn more about short interest. This could lead to a slowdown in economic growth. If a stock has a short interest ratio of 10%, then it means that for every 10 outstanding shares, one is held as a short. An increase in stock borrow rates may force (squeeze) some short sellers into closing their positions getting out to realize their remaining mark-to-market profits and exiting before other buy-to-covers drive the stock price up, Dusaniwsky said. Trader has $2500 but owes his broker 100 shares of XYZ. Should You Take a Cruise in Royal Caribbean Stock? Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. It is generally not considered to be a good thing for a stock to be hard-to-borrow. These fees are also used as a factor in a short sellers risk/reward scenario. Unsualinvestor Sophisticated investors are also involved in short selling as they try to hedge market risk. A stock loan fee can be contrasted with a stock loan rebate, which is payment received by those who lend stock to others. Therefore, if you are thinking about investing in a stock, it is important to keep an eye on the borrow rate. How Selling Etf Affect Underlying Securities. One of these strategies is short selling. Short interest: 39.80% or $281.32 million. When you short stock you're actually borrowing the shares from your broker and then hoping to return those borrowed shares back to the broker at a lower price. Brokers often split the borrowing fees with the lenders. Add to Watch List. While a necessary part of the market, short selling also has its fair share of risks. Short borrow fees are charges assessed by a lender when a borrower sells a security before the lender has had a chance to sell the security. Additionally, short sellers need to have the discipline and emotional fortitude to stick to their plan and avoid succumbing to fear and panic when things go wrong. A stock loan rebate is an amount of money paid by a stock lender to a borrower who has used cash as collateral for the loan. Flexible workspace company WeWork, Inc. (NYSE: WE) went public through a reverse merger with a special purpose acquisition company (SPAC) called BowX Acquisiti. So, while Tesla may have the highest implied borrowing costs right now, this could change tomorrow. Copyright 2023 InvestorTurf - All Rights Reserved. View More Analyst Ratings for BYND View the Latest Analyst Ratings, Cannabis Short Sellers Up Another 0M In November. This is because it can lead to a situation where the stock is being driven higher by short sellers who are having a difficult time getting their stock back. If the borrow rate is high, it can be a sign that the stock market is in trouble. For example, if a company borrows $1,000,000 at a 6% interest rate, they will have to pay $60,000 in interest over the course of one year. CEL-SCI Corporation (NYSE: CVM ), 64.6% borrow fee. The higher the implied repo rate, the higher the implied borrowing costs for the security in question. Short sellers need to have a solid understanding of the stock market and the individual stocks they're considering shorting, as well as an in-depth understanding of the risks and consequences of short selling. Here are the stocks on the market with the highest short interest including Workhorse Group Inc, Root Inc, Ontrak Inc, Blink Charging Co, and Clover Health Investments. Dear MULN Stock Fans, Mark Your Calendars for March 7. Beyond Meat Inc (NASDAQ: BYND), 59.5% borrow fee. The stock loan fee on a per-day basis, assuming a 360 day year, is therefore ($25 million x 3%) / 360 = $2,083.33. However, a rate of 1% or higher is generally considered high. Short selling occurs when an investor borrows a security, sells it on the open market, and expects to buy it back later for less money. Access your favorite topics in a personalized feed while you're on the go. This is where the chance to make money on this information comes in. Likewise, Beyond Meat (NASDAQ:BYND) rewarded short sellers with a 128.2% return. This could lead to people being less able to borrow money for new purchases, such as a home or car. TapImmune Inc. (NASDAQ: MRKR), 34.4% borrow fee. For example, Interactive Brokers splits the fees 50/50 with its customers. A short squeeze happens when there is a lack of supply to cover the excess of demand for a particular stock. Highest Borrow Rate Stocks Published: 2022-09-07. For example, if one wishes to short sell 100 shares of a company going for $10 a share, one will need about $500 in a margin account. Ontrak Inc (NASDAQ: OTRK) assists those who have unresolved health conditions that lead to serious medical problems. For starters, short sellers are normally charged stock borrowing costs that, in worst case scenarios, can exceed the profit from the short trade, especially when dealing with stocks that are difficult to borrow. Will Q4 Results Send Zoom Video Stock Higher?, Occidental Petroleum Pulls Back To The Sweet Spot. One measure of implied borrowing costs is the implied repo rate. This is the rate that a lender would demand to lend securities against a collateral agreement (repo) for a particular time period. HTB The stock loan fee amount depends on the difficulty of borrowing a stockthe more difficult it is to borrow, the higher the fee. This way the brokerage can loan the stock out to other investors. Now Mr. 2019 Benzinga.com. It could also cause some borrowers to default on their loans, which can have a ripple effect on the overall economy.