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5 Short Squeeze Candidates To Watch: Progenity, Digital Brands Top List Again, SPAC AGC Joins Ahead Of Merger

Benzinga Real-time News ·  2021/10/25 09:38

Potential short squeeze plays have gained steam in 2021 with new retail traders looking for the next GameStop Corp (NYSE:GME) or AMC Entertainment Holdings Inc (NYSE:AMC).

A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back the shares they initially borrowed at a higher price.

Fintel Data: Data from Fintel, which requires a subscription, provides a look at some of the top shorted stocks and data that shows how likely a short squeeze is to happen.

Here is a look at Fintel’s top five short squeeze candidates for the week of Oct. 25.

Progenity: Biotech Progenity Inc (NASDAQ:PROG) tops the short squeeze leaderboard for the second straight week. Fintel reports that 22.4% of the company’s float is short, in line with last week’s total. The company has a cost to borrow of 76.9%, up from last week’s 74.6%.

Shares rallied on news of a patent for a preeclampsia test being awarded. Fintel points to the company issuing new shares being a potential roadblock but for those shorting the stock, “it could end in tears for those betting big against it today.”

Digital Brands: Direct-to-consumer brand company Digital Brands Group (NASDAQ:DBGI) comes in second on Fintel’s list for the second straight week. Fintel reports 18.8% of the company’s share float shorted, in line with the previous week. Shares have a cost to borrow of 34.7%. Raw short interest in the company is up over 970% in recent weeks.

Related Link: 5 Short Squeeze Candidates To Watch: Progenity, Vinco Ventures And More 

Protagonist Therapeutics: Biotechnology Protagonist Therapeutics (NASDAQ:PTGX) ranks third on the list for this week. Fintel reports 12.4% of the company’s float short and a borrow fee of 16.9%. The figures rank on the lower end of the list, but Fintel reports that short interest is up 28% in the last reporting period.

Altimeter Growth Corp: SPAC Altimeter Growth Corp (NASDAQ:AGC), which is bringing SE Asian company Grab public, ranks fourth on Fintel’s list. Grab is a leader in many segments in SE Asia including ride-hail, digital payments and food delivery.

Fintel shows 35.3% of the company’s float short, the highest of this week’s top five short-squeeze candidates. The borrow rate on AGC shares is 13.1%. Fintel shows strong institutional ownership with shares owned up 254% in the recent quarter and the number of funds owning AGC shares up 22%.

Paltalk: Communications company Paltalk (NASDAQ:PALT) ranks fifth for the second straight week on Fintel’s short squeeze candidate list. Fintel shows 5.6% of shares floated, which is on the lower end. Paltalk has the highest borrow fee on the list at 131%. Fintel points to a float of 7.2 million non-shorted shares and points out that it would take only $50 million to snap up the remaining shares.

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