If you’re like most traders right now, you’re looking for an edge. Penny stocks have continued offering this “edge” simply by presenting opportunities to profit from slight price movement quickly. Besides that, however, other trends in the stock market today are helping traders find new ways to capitalize on different themes.
One of these themes is “short squeeze stocks,” or, rather, stocks with higher levels of short interest. In today’s article, we’re looking at five more penny stocks with higher short interest, according to data from Fintel. This continues our list of penny stocks from last week, “5 Short Squeeze Penny Stocks To Watch Today” where we took a closer look at a handful of other stocks. Today, those same stocks continued trading higher during the early morning session on November 1.
What Is A Short Squeeze?
So what is a short squeeze anyway? If you’re new to this stock market theme, you should first know some of the basics and lingo. When a trader “shorts” a stock, they are taking a bet that share prices will decline. To execute a successful short, that trader will borrow shares from their broker, sell them into the open market and take in cash. If/when they are correct, and the stock price declines, they’ll take a portion of that cash and repurchase the same amount of shares at the lower price, return those shares to their broker, and keep the remaining cash as profit.
Read more: Best Penny Stocks to Buy Right Now? 3 to Watch This Month
However, if a stock’s price doesn’t decrease and, instead, increases, this is where you start seeing short squeezes materialize. Since the trader still needs to return the borrowed shares, it doesn’t matter the share price; they only need to return a set amount of shares. In this case, a trader who’s short will repurchase the stock at higher prices, taking a loss.
But as more buying from retail comes in, more shorts get “squeezed” out of their position and are forced to cover their short. You end up with a snowball effect, and thus, we see big moves from famous meme stocks like AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME), and plenty of other examples from earlier this year. Now, just because a stock has a higher level of short interest, it doesn’t mean it’s due to squeeze for sure. But since this is a popular trend, this article will focus on five more penny stocks with higher levels heading into the start of November.
5 Short Squeeze Penny Stocks To Watch
- Voyager Therapeutics Inc.(NASDAQ:VYGR)
- Kala Pharmaceuticals Inc.(NASDAQ:KALA)
- Electrameccanica Vehicles Corp. Ltd.(NASDAQ:SOLO)
- Meta Materials Inc.(NASDAQ:MMAT)
- Clovis Oncology Inc.(NASDAQ:CLVS)
1. Voyager Therapeutics Inc.(NASDAQ:VYGR)
Shares of Voyager Therapeutics have run the gamut for the last month. Following a hard drop to 52-week lows of $2.46 on October 5, VYGR stock exploded to highs of $5.73 during the sessions to follow. The driving catalyst for this breakout move came as Voyager announced a licensing option agreement with Pfizer Inc. (NYSE:PFE) for capsids generated from Voyager’s RNA=driven TRACER screening technology. This deal gives Pfizer the right to evaluate novel capsids chosen for the central nervous system and cardiac tropisms from the TRACER platform. There is an upfront $30 million payment and the potential to earn up to $580 million.
Recent VYGR Stock News
These weren’t the only headlines to spark attention for the stock. Late last month, Voyager, a gene therapy company, presented positive preclinical data showing that a single IV dose of its GBA1 gene replacement therapy was able to raise levels of specific enzymes (GCase) in in-vivo and in-vitro models. Glenn Pierce, M.D., Ph.D., interim chief scientific officer of Voyager, explained, “These data show the potential that blood-brain barrier penetrant capsids may have to address severe neurological diseases as compared to loco-regional injection of AAV into the CNS and offer a solid foundation for continued investigation of this novel approach.”
Is VYGR One Of The Short Squeeze Penny Stocks To Buy?
If you’re looking for penny stocks with higher levels of short interest, Voyager might be on it. According to data from Fintel, the current percentage of the float shorted sits around 16.75%. Fintel data also shows that the 1-month change is much greater as of this article than in the previous month. The important part to understand is that shorting is typically a bet against a company. So just because there are higher levels of short interest, that doesn’t necessarily suggest a squeeze or bullish tone. Keep that in mind if VYGR is on your list right now.
2. Kala Pharmaceuticals Inc.(NASDAQ:KALA)
Another one of the names on this list of penny stocks today is Kala Pharmaceuticals. The company specializes in eye diseases. Its EYSUVIS platform, according to the company, was a preferred prescription for short-term treatment of dry eye disease. The company’s other platform, INVELTYS® targets treatment of post-op inflammation and pain following ocular surgery.
Recent KALA Stock News
Besides a few industry presentations and board changes, there haven’t been many recent headlines from Kala Pharmaceuticals. However, as far as analysts are concerned, even with the board changes, they still hold Buy ratings on the stock. The most recent update from Oppenheimer shows the firm has KALA at Outperform paired with a $13 price target.
Is KALA One Of The Short Squeeze Penny Stocks To Buy?
As far as short interest is concerned, Fintel data shows that KALA stock’s short float percentage sits at 18.51% as of this article. This is also slightly higher compared to the short float data from the month prior. Whether or not this becomes one of the potential short squeeze stocks to watch is to be seen. However, considering that KALA just hit new 52-week lows last week, there could be a lot of ground to make up, to say the least.
Read more: 5 Penny Stocks To Watch For November With Potential Biotech Catalysts
3. Electrameccanica Vehicles Corp. Ltd.(NASDAQ:SOLO)
Thanks to the big moves from companies like Tesla (NASDAQ:TSLA) and EV stocks, seeing at least one beaten-down EV name on this list isn’t surprising. Electrameccanica has been in and out of the spotlight for the better part of the last year or so. The company initially gained acclaim for its urban-focused, single-passenger flagship vehicle, Solo. What’s more, is that the company has just begun to deliver its vehicles. This has added to the excitement in the stock market.
Recent SOLO Stock News
This week the company’s strategic contract manufacturing partner, Zongshen Industrial Group, exercised 1.4 million warrants at a CAD$4 strike price equating to CAD$5.6 million in proceeds for the company. “We strongly believe in ElectraMeccanica’s mission, and the groundbreaking SOLO EV, with this warrant exercise, is a clear testament to our confidence in the Company’s future and the value we place on our mutual relationship,” explained Zongshen Industrial Group Chairman Zuo., in the November release.
Is SOLO One Of The Short Squeeze Penny Stocks To Buy?
With this excitement in EV has come a surge of momentum into the stock market today. SOLO shares have spiked higher, now approaching the $4 mark, with volume also climbing. As far as short data is concerned, Fintel shows the short float percentage sitting around 17.32%. While this isn’t the highest short interest we’ve seen from a penny stock, it is a bit higher than many others right now. Is it worth adding to your list of short squeeze penny stocks?
4. Meta Materials Inc.(NASDAQ:MMAT)
On the higher end of the penny stock spectrum, Meta Materials has jumped higher to start the month. The company is another that’s been in and out of the spotlight amid the renewable energy conversation. Meta specializes in high-performance functional materials and composites but has received much of its attention due to its place in the solar energy and “ESG” trends of the market. One of the areas of its business that didn’t achieve as much attention as it has in the last few weeks has been its AI platform. Thanks to Facebook’s (NASDAQ:FB) recent Meta news, the company has gained attention based on its name and speculation stemming from an interest in AR/AI/VR companies.
Recent MMAT Stock News
While Meta has no relation to Facebook’s META, an upcoming panel discussion has the companies in the same room. Today (Nov 1.), the company participated in an online panel discussion titled, AR Eyewear Engineering Challenges and the Role Advanced Optical Materials Could Play.”
The panel includes names from Stanford University, Tilt Five, Facebook Reality Labs, Microsoft / Hololens, Covestro, and META, moderated by Mathew Olson, AR/VR journalist from The Information.
Is MMAT One Of The Short Squeeze Penny Stocks To Buy?
Speculation, news, panel discussions, and interest in tech stocks haven’t hurt momentum in MMAT stock. As far as it being a potential “short squeeze stock,” I’ll let you decide. According to data from Fintel, MMAT stock’s short float percentage sits at 15.41%.
5. Clovis Oncology Inc.(NASDAQ:CLVS)
Shares of Clovis Oncology continued trading higher on November 1st. This marks the 3rd day of higher highs after CLVS stock dipped in October. The company specializes in anti-cancer agents. Whether developing, acquiring, or commercializing, Clovis has focused on advancing new options for cancer patients.
Recent CLVS Stock News
There’ve been several headlines sparking interest in CLVS stock recently. For instance, late last month, Clovis reported a clinical supply agreement with ITM Isotope Technologies Munich SE providing Clovis with ITM’s EndolucinBeta in the clinical development of Clovis’ FAP-2286. This is Clovis’ treatment for advanced solid tumors. It’s also in a Phase 1/2 LuMIERE study. This week, something else to keep in mind is that on November 3, Clovis reports 3rd quarter financial results. Will this pose a higher risk scenario for the company?
Is CLVS One Of The Short Squeeze Penny Stocks To Buy?
According to Fintel data, CLVS stock’s short float percentage is sitting just under 22% as of this article. This is also slightly higher than the percentage a month ago. Whether or not this joins the list of official short squeeze stocks or not is yet to be seen as shares approach the 50 day moving average on the chart. This has been a sticky technical level that CLVS has yet to break and hold above for any meaningful period of time.
More Short Squeeze Penny Stocks To Watch
This is a continuation of our list of short squeeze penny stocks we discussed last week. Again just because there are higher levels of short interest, that doesn’t guarantee a squeeze. However, the more information you have at your disposal, the better your decision-making process can be. If you missed the article “5 Short Squeeze Penny Stocks To Watch Today” last week, here are the first five stocks on the list:
- ContextLogic Inc. (NASDAQ:WISH)
- Senseonics Holdings (NYSE:SENS)
- Romeo Power Inc. (NYSE:RMO)
- Vinvo Ventures Inc. (NASDAQ:BBIG)
- Bitfarms Ltd. (NASDAQ:BITF)
