The 6 Most Shorted Nasdaq Stocks: Apple on the Rise

By Trey Thoelcke Published Sep 25, 6:35AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

An almost 18% surge in Apple shares sold short between the August 31 and September 15 settlement dates was the most notable move in among the most heavily shorted stocks traded on the Nasdaq. Changes in short interest among the top six were otherwise mild, with Frontier Communications and Sirius XM holding on to the top spots.

Note that the five most shorted Nasdaq stocks all had more than 110,000 shares short by the middle of the month.

After rising nearly 8% in the previous period, the short interest in Frontier Communications Corp. (NASDAQ: FTR) saw another 2% or so gain to almost 172.46 million shares, or 14.9% of the telecom’s float, by mid-September. That was the highest number of shares short in at least a year. The days to cover remained more than seven. Frontier was a Jefferies value pick recently, and shares ended the short interest period nearly 5% higher, compared to a 1% gain for the Nasdaq. The share price now is around 28% lower year to date. The stock closed Thursday at $4.83, within a 52-week trading range of $4.19 to $8.46.

ALSO READ: The 6 Most Shorted NYSE Stocks

Reclaiming some of a 5% drop in the previous period, the number of Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short grew about 2% to around 155.41 million early in the month. That was 7.1% of the total float and the third highest level so far this year. At the current average daily volume, it would take more than six days to cover all short positions. At least one analyst has started coverage on Sirius recently. The share price ended the two-week period around 1% higher, but it has given up that gain since. Shares ended Thursday at $3.78, in a 52-week trading range of $3.14 to $4.04.

By the middle of the month, Advanced Micro Devices Inc. (NASDAQ: AMD) had more than 131.36 million shares short, which was essentially the same as on the prior settlement date. The most recent reading totaled 20.8% of the company’s float. The days to cover rose to more than 12 as the average daily volume continued to cool from the highs of early summer. At least one analyst still sees big upside potential in AMD shares. The share price ended the two weeks about where it began, though at one point it was up nearly 12%. The stock closed at $1.72 on Thursday, and the 52-week range is $1.61 to $3.72.
MannKind Corp.’s (NASDAQ: MNKD) short interest, at around 126.66 million shares as of September 15, was likewise about the same as on the prior settlement date. Note that was almost half, 48.6%, of the total float. The days to cover jumped from about 24 to more than 33. Peak short interest year to date was more than 131 million shares, back in May. One analyst downgraded the shares during the period. Short sellers watched the share price pull back more than 7% in early September. It is now down more than 33% year to date at $3.46. Shares have changed hands between $3.20 and $7.88 in the past year.

About 118.85 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the most recent settlement date. That was less than 1% fewer than at the start of the period, and it totaled 2.5% of the company’s float. The days to cover rose to almost four as the average daily volume retreated from a year-to-date high. Intel has fared relatively well since volatility increased in August, ending the two-week period more than 4% higher while the S&P 500 was flat. Since that time, the stock has dropped about 3% and closed most recently at $28.48. Shares have traded between $24.87 and $37.90 in the past year.

The number of Apple Inc. (NASDAQ: AAPL) shares short surged 17.7% in the period when more new products were launched. The more than 92.63 million shares short mid-month represents 1.6% of the float. Short interest has risen in three consecutive periods. The average daily volume dropped in the period, and it would take more than a day to cover all short positions. Apple was a favorite tech stock pick of JPMorgan recently. The share price increased more than 4% during the two weeks, though they pulled back a bit afterward. The stock price was $115.00 per share on Thursday’s close. It has traded in the past year between $92.00 and $134.54.

ALSO READ: 8 Great Value Stocks With Solid Dividends Under 10 Times Earnings

Rounding out the top 10 were BlackBerry Ltd. (NASDAQ: BBRY), Microsoft Corp. (NASDAQ: MSFT), Groupon Inc. (NASDAQ: GRPN) and Micron Technology Inc. (NASDAQ: MU). Of these, Microsoft was the standout, with a more than 10% short interest gain in the first two-weeks of the month. Express Scripts Holding Co. (NASDAQ: ESRX) dropped out of the top 10.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.