Are Short Squeeze Penny Stocks On Your List Right Now?
Penny stocks are known to be highly volatile. But throwing in additional catalysts like higher short interest or high volume can amplify the volatility overall. This article looks at a handful of penny stocks with high short interest, as this has become a popular niche among day traders.
One of the main reasons is that with higher short interest can come the potential for a short squeeze. It creates a scenario where buying in a stock experiences a snowball effect in a short period. In turn, it can become a breeding ground for highly aggressive breakouts in stocks. Though not always a guarantee, the first place to look for those so-called “short interest stocks” is identifying higher levels of shorting.
Short Squeeze Penny Stocks To Watch
Volta Inc. (VLTA)
EV stocks are getting a recharge at the beginning of the new year. Volta is one of the names training a bit more ground after hitting 52-week lows of $0.30 before the end of 2022. Since then, VLTA stock managed to bounce back more than 100% as optimism, and a slightly more risk-on appetite for stocks has returned to the market.
Volta’s PredictEV infrastructure planning tool uses behavioral sciences to help plan EV infrastructure efficiently. It also manages a network of charging stations that also double as digital advertising via their large-format screens.
Other than a November update, not much has come from the company as far as recent headlines. However, the technical set-up on the penny stock and other aspects like short interest have piqued some attention on the sub-$1 stock.
In particular, the VLTA stock short float percentage sits between 17%-18%, according to sources like Fintel and TDAmeritrade. Paired with higher trading volume and the latest uptrend, that data has become something traders have started following.
Party City Holdco (PRTY)
Another one of the household name penny stocks getting circulated among the retail crowd is Party City. Yes, this is the same Party City you’ve likely walked into or driven by, which sells party supplies, costumes, and more. Believe it or not, it is, in fact, a penny stock, and trading below $1, it’s one of the lowest-priced in the mix.
This month has been volatile for the stock as shares sunk to fresh 52-week lows early on. Since then, however, PRTY stock has managed to bounce back by more than 100%. Restructuring discussions have been going on with its advisers as reports surface the company may be planning for bankruptcy protection “within weeks,” according to Wall Street Journal sources. Regardless, it hasn’t stopped traders from taking a closer look at other factors of the stock.
One of those factors is its short interest. Data from both TDAmeritrade and Fintel show the PRTY stock short float sitting between 13% and 14% as of this article.
Lightning eMotors, Inc. (ZEV)
Another one of the EV penny stocks under $1 to watch recently is Lightning eMotors. The company provides medium-duty commercial vehicles and EV technology for fleets. Like Volta, ZEV stock has also enjoyed a rebound since late December. Shares bounced back more than 100% over the last few weeks following ZEV hitting 52-week lows of $0.2907.
This month, a string of news headlines has helped prompt a bit more optimism in the company. Highlights include record production of vehicles and powertrains reported for the fourth quarter of 2022, as well as the launch of a new fleet planner. Its free fleet configuration tool will offer fleet managers a way to get custom operating cost analysis and carbon reduction data based on the recommended Lightning EV that fits their specific needs.
This week, ZEV stock may be in the spotlight for a slightly different reason. Current short float data from Fintel and TDAmeritrade show the stock’s short float between 15.2% and 16.5%. While this isn’t the highest short interest among stocks in the market today, it has been a topic of discussion.
Astra Space, Inc. (ASTR)
The last few years in the market have seen many different trends. In 2021, Special Purpose Acquisition Companies or “SPACs” were incredibly popular. They involved public shell companies being formed to find an operating entity to acquire and merge into the pubco.
While this excitement brought a lot of bullishness at the time, it ultimately ended badly for early investors. Many SPACs have completely imploded since making their public debut. Does this mean they’re bad companies? I’ll leave that up to you to decide.
However, thanks to the general sentiment in the stock market today, some traders are hunting for cheap stocks that once had as high as billion-dollar valuations for an opportunity. Astra Space is one of these SPAC stocks, and recent trends have seen share prices rebound from 52-week lows. The company provides space products and launch services, and thanks to a management shake-up, traders seem to have started paying more attention to the company.
Last month, Astra announced it elevated senior leaders to the management team. CEO Chris Kemp further explained, “Key to delivering the full power of Astra to our customers is having a senior leadership team with deep experience, knowledge, and connectivity across the entire company — what we call horizontal leadership.”
Kemp also notably purchased over one hundred thousand dollars worth of ASTR stock before the new year, prompting some attention. We discussed this in the article “Penny Stocks To Buy: 6 Insider Picks Before 2023.”
Now, the market might be looking at another piece of data in the short interest of ASTR stock. Fintel shows the current short float percentage sitting around 16% at the time of this article.
SmileDirectClub, Inc. (SDC)
Thanks to the meme-stock movement and big breakouts from household name stocks like AMC Entertainment and GameStop, the search for the next multibagger penny stock seems neverending. It has placed the spotlight on once-popular brands like Bed Bath & Beyond, Blue Apron, and, recently, Smile Direct Club.
The beaten-down medtech company has faced plenty of headwinds due to its mixed performance. Analysts have also grown more bearish on the name, with the likes of UBS analysts, for example, slashing price targets by more than 50%. The firm maintains a Neutral rating but dropped its $1.20 target to $0.50 last month. While this may have brought bearish bets on the stock, it might have also brought more attention to the short situation in SDC shares.
As of this article, Fintel and TDAmeritrade show a short float percentage of around 20%.