Investing

The 6 Most Shorted Nasdaq Stocks: New King of the Mountain

Between the August 14 and August 31 settlement dates, Sirius XM was dethroned as the most heavily shorted stock traded on the Nasdaq. The new king of the mountain is Frontier Communications, which saw the biggest bump in the number of shares short among the top five. At the same time, short sellers appeared to lose interest in BlackBerry in particular.

Note that the five most shorted Nasdaq stocks all had more than 110,000 shares short by the end of the month.

After dropping for the three periods in a row, the short interest in Frontier Communications Corp. (NASDAQ: FTR) increased nearly 8% to more than 168.53 million shares, or 14.5% of the telecom’s float, by the end of August. That was the second highest number of shares short in at least a year. The days to cover grew to more than seven. The dividend seemed safe after the most recent earnings, and shares ended the short interest period more than 7% lower, compared to a 5% decline for the Nasdaq. The share price is more than 17% lower year to date. The stock closed Thursday at $5.51, within a 52-week trading range of $4.19 to $8.46.

ALSO READ: The 6 Most Shorted NYSE Stocks

After rising more than 4% in the previous period, the number of Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short retreated about 5% to around 152.50 million late last month. That was 6.9% of the total float and the first sizable pullback since May. At the current average daily volume, it would take more than five days to cover all short positions. During the period, Sirius increased its share buyback plan. The share price ended the two-week period less than 3% lower, but it has climbed more than 2% since. Shares ended Thursday at $3.86, in a 52-week trading range of $3.14 to $4.04.

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