3 Explosive Stocks With High Short Interest

By Ian Cooper Published Oct 31, 10:18AM EDT

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3 Explosive Stocks With High Short Interest — © 24/7 Wall St.

Short interest is always a sign of how bearish investors may be on a stock.

But it can also serve as a potential sign of a coming short squeeze, especially if the stock in question is rocketing higher or there’s pending hot news.

In fact, here are a few investors may want to keep an eye on for a potential squeeze.

Viking Therapeutics (NASDAQ: VKTX): | VKTX Price Prediction We mentioned this one yesterday, as well. Today, we’re still watching the stock run with high short interest.

With 23% of its float short, Viking Therapeutics has been gaining momentum. In fact, since bottoming out at around $25, it’s now up to $38.88 and climbing. Fueling upside, analysts at Canaccord initiated coverage of the obesity treatment stock with a buy rating and a price target of $106 a share. VKTX is just starting to race higher again on obesity news.

Altimmune (NASDAQ: ALT): With a short interest of 24.5%, Altimmune is another weight loss treatment stock to keep an eye on. Now trading at $4.07, it continues to gain momentum on the obesity treatment story and the potential for further industry M&A.

As noted in its most recent earnings report, “Pemvidutide demonstrated rapid and robust MASH effects, meaningful weight loss, and impressive safety and tolerability in the recently reported results from the IMPACT Phase 2b trial,” said Vipin K. Garg, Ph.D., President and Chief Executive Officer of Altimmune. “We are preparing for an End-of-Phase 2 Meeting with the FDA, which will position us well for Phase 3 development.”

Collegium Pharmaceutical (NASDAQ: COLL): With a short interest of 18.6%, Collegium Pharmaceuticals is also showing big signs of life. After finding strong support at $31.65, COLL is now up to $35.65 and could push aggressively higher.

The company is benefiting from its ADHD medication, Jornay PM. In fact, as the company noted in a recent earnings release, “Following encouraging performance in the first half of the year, we anticipate a strong back-to-school season and second half of the year for Jornay PM and have raised our full-year revenue guidance accordingly.”

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About the Author Ian Cooper →

Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.

He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.

Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.