3 Explosive Stocks With High Short Interest

Ground Picture / Shutterstock.com

High short interest can help investors identify potential high risks. And, it can also be a sign of a possible short squeeze situation – especially if the stock in question has been rocketing higher.

In fact, here are three high short interest stocks you may want to pay attention to.

Viking Therapeutics (NASDAQ: VKTX): With 23% of its float short, Viking Therapeutics has been gaining momentum. In fact, since bottoming out at around $25, it’s now up to $35.22 and climbing. Fueling upside, analysts at Canaccord initiated coverage of the obesity treatment stock with a buy rating and a price target of $106 a share.

The company is also seeing progress in its Phase 3 VANQUISH trial for the injectable obesity drug VK2735. As noted in a company press release, “The company expects to complete enrollment in the VANQUISH-1 study by the end of 2025, with completion of enrollment in VANQUISH-2 expected in 1Q26.”

NuScale Power (NYSE: SMR): With a short interest of 22.6%, NuScale has also been explosive. Since bottoming out at $32.50, SMR is now back to $43.17 and rallying. For one, there’s growing demand for nuclear energy, especially with explosive demand from data centers. Two, analysts at Cantor Fitzgerald just initiated coverage of SMR with an overweight rating and a price target of $55 a share.

Lemonade (NYSE: LMND): With a short interest of 25%, Lemonade has been just as explosive. Since bottoming out at around $47.50, LMND is now at $60.71 and could also push aggressively higher. Analysts believe Lemonade’s earnings on November 5 could send the stock soaring, especially with its exposure to artificial intelligence. By using AI for just about every part of its business, it’s been delivering faster, more efficient, and transparent insurance information.

All of which would help explain why LMND was able to grow its policyholder base to 2.7 million at the end of the second quarter. That was 24% year-over-year growth, which we expect to improve even more moving forward.

View Comments