Short Interest Monitor: AHR, FOXA, OKLO
The latest edition of the Short Interest Monitor is dominated by clean-energy companies but also features a range of tech firms, a fast-casual restaurant chain, a media company, and a health care REIT.
Short sellers targeted American Healthcare REIT (AHR) in the first two weeks of July after its stock price surged. Valuation concerns might have attracted short sellers, as AHR currently trades at roughly 99 times its trailing 12-month earnings. The company has benefited from surging demand for senior housing, leading to multiple analyst upgrades throughout the year. AHR missed Wall Street's earnings estimates in its May first-quarter earnings report but saw its revenue surge 20% year over year. The REIT also completed an equity offering in late May that added 16.1 million shares of common stock to its total, potentially leading to dilution concerns.
Fox Corporation (FOXA) was another short-seller target in early July. Shares of the media company have plunged more than 20% year to date amid ongoing concerns about declining traditional cable and satellite subscribers. In mid-June, FOXA also entered a definitive agreement to acquire the smart TV platform Roku in a cash-and-stock deal worth roughly $22 billion. Some investors have expressed debt and integration concerns since the transaction was announced. In its May first-quarter earnings report, FOXA's revenue declined 8% year over year as advertising and television revenues plummeted.
The pre-revenue nuclear reactor developer Oklo (OKLO) attracted more short sellers in July amid skepticism over the extended timeline required to commercialize its small modular reactors (SMRs). Oklo's widening loss expectations and high valuation have attracted short sellers since it went public in 2024. However, the company took another step toward commercialization just last week, receiving authorization for its Groves Isotope Test Reactor in Texas. Shares of OKLO also popped after the company announced it was part of a $200 million Trump administration initiative aimed at accelerating the deployment of SMRs for AI data centers.
The table below shows the complete Short Interest Monitor, which includes 10 equities with elevated and rising short interest. Each stock has a market cap of at least $2 billion and short interest that represents at least 10% of its outstanding shares.
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This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.
All corporate/issuer names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Short selling is an advanced trading strategy involving potentially unlimited risks, and must be done in a margin account. There is no guarantee the brokerage firm can continue to maintain a short position for any period of time. Your position may be closed out by the firm without regard to your profit or loss.
Investing involves risk, including loss of principal.
Investing in REITs may pose additional risks such as real estate industry risk, interest rate risk and liquidity risk.