Short squeeze stocks are becoming a mainstay in the arsenal of trends to follow this year. Thanks to extensive breakouts from the likes of AMC Entertainment (NYSE: AMC), GameStop (NYSE: GME), and countless others, retail traders, in particular, are on the hunt for the next round. We’ll look at a handful of penny stocks with high short interest right now, according to Fintel data. Keep in mind that just because there are higher levels of short interest, you aren’t guaranteed a squeeze. However, when hunting for stocks with squeeze potential, the first place to look is, in fact, the short float percentage.
Short Squeeze Penny Stocks To Watch
- Harbor Custom Development Inc. (NASDAQ: HCDI)
- Kala Pharmaceuticals Inc. (NASDAQ: KALA)
- Vertex Energy Inc. (NASDAQ: VTNR)
- Leap Therapeutics Inc. (NASDAQ: LPTX)
- Katapult Holdings Inc. (NASDAQ: KPLT)
Harbor Custom Development Inc. (NASDAQ: HCDI)
Shares of Harbor Custom Development are no stranger to big moves. If you look at the HCDI stock chart this month, you’ll see what I mean. Not only have there been 1-day breakouts overall, but the penny stock has also managed to mount a steady rebound for most of November. Harbor Custom Development is a real estate development company involved in land development. Everything from acquisition and entitlements to construction, sales, and management are in Harbors wheelhouse.
Recent HCDI Stock News
The big move initially began after Harbo delivered strong earnings results in its third-quarter update. Sales topped $18 million for the quarter compared to the $7.81 million the year prior during Q3. The company also authorized a $5 million stock buyback. Compounding momentum, this week, Harbor reported on its latest commitment for $19.129 million in construction financing for 126 nits of the initial phase of its 228-unit apartment complex in Washington state. While this has helped build confidence in the market, some traders have also focused on the mounting short interest.
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HCDI Stock Short Float
According to financial data company, Fintel, the current percentage of the HCDI float short sits around 17.25%. This isn’t the highest short float percentage we’ve seen, but according to Fintel, this is up from just one month ago. Furthermore, with an outstanding share count below 15 million, the overall size of the HCDI stock float is also low.
Kala Pharmaceuticals Inc. (NASDAQ: KALA)
Unlike Harbor, Kala Pharmaceuticals has been relatively flat this month. There’ve been a few spikes here and there, but KALA stock began November at $1.76 and sits around $2 as of this article. Kala specializes in treatments for eye disease. Its AMPPLIFY drug delivery technology is used in two therapies, including EYSUVIS for dry eye disease and INVELTYS for post-op inflammation and pain management.
Recent KALA Stock News
The company recently reported its Q3 results, and while they weren’t over the top, there were particular highlights discussed that have come into focus. In particular, Kala discussed its anticipation to submit an Investigational New Drug Application to the FDA for its KPI-012 candidate in treating corneal epithelial defect. There’s also potential for starting a Phase 2/3 trial next year, according to Kala. There’s also been a slew of insider transactions showing purchases in KALA stock throughout November. You can see the full details here.
KALA Stock Short Float
According to Fintel, KALA’s short float percentage sits at 19.97 right now. Though this was slightly lower than a month ago, it’s still something traders have kept a close eye on this month.
Vertex Energy Inc. (NASDAQ: VTNR)
Vertex is one of the larger motor oil processors in the US. But thanks to a mixed outlook on the energy sector, stocks, including VTNR, have felt the impacts. Shares of the penny stock have remained under pressure for most of the second half of the year. Regardless, it has managed to hold a sideways trend for the majority of November.
Recent VTNR Stock News
Earnings are the most recent flavor of the month. Vertex beat earnings per share estimates of $0.01 by coming through with an $0.11 EPS figure. However, it missed sales estimates by a wide margin. Benjamin P. Cowart, President and CEO of Vertex, explained, “With the recent sale of our convertible notes in November, we’ve secured access to long-term capital at an attractive fixed rate and increased our exposure to new institutional investors while mitigating near-term dilution risk for existing shareholders. We look forward to closing on the Mobile transaction during the first quarter 2022.”
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With the latest concerns stemming from a new virus variant, speculation has heavily influenced energy stocks recently.
VTNR Stock Short Float
As far as short float percentage goes, VTNR stock sits around 21.24%. Furthermore, according to Fintel data, this figure is much higher than during the previous month.
Leap Therapeutics Inc. (NASDAQ: LPTX)
Leap is another one of the penny stocks to watch with higher short interest right now. The company is coming off of a solid end to its third-quarter, but not in the way you might expect. Following a big move in September to highs of $4.17, LPTX stock steadily dropped back down to the $2 area and right around its 200-day moving average this quarter. However, after testing this technical level (as you’ll see), shares have managed to bounce during the end of November.
Oncology therapeutics companies have been in and out of the spotlight throughout the year. Leap initially gained attention last quarter after announcing positive data from a study of its DKN-01 treatment candidate combined with BeiGene’s tislelizumab and chemotherapy. The combination treatment was designed for patients with gastric or gastroesophageal junction cancer.
Recent LPTX Stock News
Speculation may be a partial catalyst to the recent bullish trend for LPTX. This week, the company participates at the Piper Sandler Healthcare Conference.
LPTX Stock Short Float
According to Fintel, LPTX stock has a short float percentage of around 15.57% as of this article. With the recent uptick in trading trends, will that impact the market heading into December?
Katapult Holdings Inc. (NASDAQ: KPLT)
Finally, Katapult Holdings rounds out this list of penny stocks with high short interest. The company is in the FinTech arena focused on eCommerce, including point of sale services. Unlike some of the other penny stocks on this list, KPLT has been much more volatile over the last few months. While it’s not a stranger to big spikes higher, the recent trend has been much more bearish in comparison to earlier in the year.
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Recent KPLT Stock News
Despite reporting strong Q3 earnings results, KPLT stock wasn’t able to sustain early November gains. Despite this as the case, it could be on the radar this week thanks to an upcoming industry event. Katapult participates at the Stephens Annual Investment Conference on December 1. It will also be providing a Q4 performance update, which could carry its own potential risks depending on the results in the update.
KPLT Stock Short Float
According to Fintel, the short float on KPLT sits around 15.16% right now.
Are You Looking To Buy Penny Stocks With High Short Interest?
Remember that just because there are higher levels of short interest, there’s no guarantee of a squeeze. Furthermore, traders who are short a stock are usually betting against it for a reason. Based on this, it will be essential to look at all angles of these companies.
