The Short Interest Monitor

Tracking stocks with high and rising short interest can help traders gauge market sentiment, monitor positioning trends, and spot potential red flags in key market sectors. That's why our Short Interest Monitor—using data from the Financial Industry Regulatory Authority (FINRA) and Schwab.com—highlights equities that have recently seen a rise in short interest.

Our latest list highlights a wide range of stocks in various industries, including a few names that have made headlines in recent weeks.

Nebius Group (NBIS) saw its short interest rise more than 10% from the prior reporting period in the final two weeks of February, while its days to cover metric rose to 3.68. Short sellers jumped into the AI infrastructure company after it reported strong revenue growth but issued weak guidance in its latest earnings report. However, NBIS short sellers were punished soon after, as Nvidia (NVDA) said it would invest $2 billion in the company and collaborate on AI infrastructure deployment, leading the stock to surge.

Vail Resorts (MTN) was another target for short sellers last month. The mountain resort company saw its short interest rise 17.9% period over period through February 27 and its days to cover metric hit 5.77. An unusually warm winter has hampered MTN's business, leading the company to slash its guidance in its latest earnings report.

NuScale Power Corporation (SMR) saw its short interest rise 13.8% in the last two weeks of February. The nuclear technology company has faced investor skepticism over its ability to commercialize its small modular nuclear reactor technology and has seen a significant increase in its operational expenses. A class action lawsuit has also been filed against SMR, alleging that it misrepresented the experience and capabilities of ENTRA1 Energy LLC, a partner that was responsible for constructing power generation facilities that would use SMR's technology.

Check out the table below to see our list of 10 stocks with elevated and rising short interest. Each name has a market cap of at least $2 billion and short interest that represents at least 10% of their total outstanding shares.

A few stocks that didn't meet the criteria to make our list stood out when reviewing FINRA's latest short interest data.

With pressure rising in the private credit industry, Blackstone (BX) saw a 27.8% rise in its short interest between February 13 and February 27. This increase came before the world's largest alternative asset manager's March 2 revelation that its flagship private credit fund, BRECD, faced a surge of withdrawals in the first quarter. BX's short interest as a percentage of shares outstanding is still just 1.4%, but this figure has risen significantly since the start of the year. 

Block, Inc. (XYZ), which cut 40% of its workforce in late February, saw its short interest rise 12.9% between February 13 and February 27. Block CFO Amrita Ahuja said the jobs cuts were meant to allow the company "to move faster with smaller, highly talented teams using AI to automate more work" in a statement. XYZ's short interest as a percentage of shares outstanding is still just 3.6%, but it's also risen in recent months.

Gold mining stocks also experienced sharp increases in short interest during the final two weeks of February. Barrick Mining Corporation's (B) short interest rose 139.2% period over period, while Newmont Corporation's (NEM) short interest jumped nearly 20%. Even as gold prices surged back over $5,000 per ounce in February, gold mining stocks retreated from recent highs as investors questioned rising operational costs and relatively conversative production outlooks.

Schwab's list of highly shorted stocks includes a few key terms that should be clearly understood. There are also notable limitations to the FINRA data used in this series. Consider the following:

FINRA requires broker-dealers to report total open short positions for all the equity securities on their books twice monthly. It then compiles this data and releases it to the public on the seventh business day after the reporting settlement date. However, FINRA's short interest report does not include off-exchange short sale trades, and it only reflects a snapshot of short positions held by brokerage firms on two specific days each month. For more information, review FINRA's article titled "Short Interest — What It Is, What It Is Not."

Our Short Interest Monitor includes four key statistics worth defining: current short interest, percentage short interest change from the prior reporting period, days to cover, and short interest as a percentage of shares outstanding.

• Current short interest represents the total number of open short positions held on brokerage firms' books for a given security, as reported by FINRA.
• Percentage change from the prior reporting period reflects the percentage increase or decrease in the total number of open short positions for a given security compared to the previous reporting cycle.
• Days to cover measures how many days—at average daily volume—it would take for all short sellers to buy back their borrowed shares and close their positions. Higher numbers typically indicate a stronger bearish conviction and greater risk of a short squeeze.
• Short interest as a percentage of shares outstanding represents the portion of a company's tradable shares that are currently sold short and not yet covered. A ratio above 10% is typically considered high, while a ratio of 20% or more indicates more severe bearish sentiment and a higher potential for a short squeeze.

It's also worth noting that targeting battleground stocks is a high-risk tactic. While some traders may be hoping to participate in a short squeeze that can drive prices higher, stocks with high or rising short interest may have deteriorating fundamentals, rising competition, or other issues that could continue to weigh on their prices. Additionally, these stocks may experience increased volatility or have liquidity issues. And a single event—like a positive earnings report or lawsuit outcome—can quickly shift market narratives, leading to unexpected price moves.

Finally, short sellers should keep in mind that highly shorted stocks often come with equally high borrowing fees that can weigh on returns. Dividend payments are also deducted from short seller accounts on the pay date, and losses from short selling are theoretically unlimited.