Penny stocks are known for their volatility and potential to skyrocket at a moment’s notice. They’re also known to break down just as quickly. But if you’re a risk-on trader, this volatility is what you’re looking for the make money trading in the stock market.
Today we look at a unique list of penny stocks where price fluctuations can be even more extreme. I’m talking about stocks with higher short interest. These are the companies that Wall Street has taken big bets against. Under the right conditions, however, bearish bets can lead to bullish explosions, as recent history suggests.
The record moves that AMC Entertainment and GameStop made early in the pandemic are proof that short squeezes can happen to astronomical proportions. Since the stock market is down in 2022, some traders think that a short squeeze paired with a market rally could be a perfect storm for bullish opportunities. Here’s a list of short interest stocks to watch this week.
Penny Stocks To Watch
| Symbol | Company Name |
|---|---|
| TNXP | Tonix Pharmaceuticals Holding Corp. |
| VRM | Vroom Inc. |
| EOSE | Eos Energy Enterprises Inc. |
| MMAT | Meta Materials Inc. |
| APRN | Blue Apron Holdings Inc. |
Tonix Pharmaceuticals Holding Corp. (TNXP)
It isn’t always about finding beaten-down penny stocks when it comes to short squeeze stocks. However, there’s a good chance that companies trading near lows have bearish bets on them. Tonix Pharmaceuticals fits the mold as shares have imploded over the last year. But after hitting fresh lows a few weeks ago, TNXP stock has managed to rebound.
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Significant volume has also accompanied the move with some of the highest levels in its public history. Global health concerns stemming from the monkeypox virus have placed attention on companies with potential exposure to a vaccine or treatment. In our article “Penny Stocks To Buy Now? Hot Monkeypox Stocks To Watch Today,” we discussed Tonix along with a few other names.
The company’s infectious disease pipeline consists of a vaccine in development to prevent smallpox and monkeypox called TNX-801. TNXP stock has been put on the radar, with more cases popping up globally.
TNXP Stock Short Interest
We looked at short data from Fintel.IO and TD Ameritrade today. As of this article, both platforms show the short interest for TNXP stock sitting above 250%. This is the penny stock with the highest short interest on this list based on data from these outlets.
Vroom Inc. (VRM)
Shares of Vroom Inc., as well as other automotive retail stocks, have popped recently. In Vroom’s case, the penny stock has bounced back 40 cents from its recent 52-week lows. Even though it’s small in dollar value, the move equates to roughly 37%. This, of course, is one of the high points of penny stocks. Even small moves can mean big percentage changes.
VRM stock is in focus after beating Q1 earnings. The company reported a loss per share of 71 cents, better than Wall Street’s expected loss per share of over $1. In addition, Vroom reported sales of more than $900 million for the quarter, exceeding estimates of $878.13 million.
VRM Stock Short Interest
VRM could be another short interest stock to watch. As of this article, Fintel data shows a short float percentage of 35.63%. Meanwhile, TD Ameritrade has a figure slightly lower at 32.11%.
Eos Energy Enterprises Inc. (EOSE)
Energy penny stocks have been a favorite amid the global supply disruption. However, Eos isn’t a typical oil and gas stock. The company focuses on energy storage systems based on sustainable zinc. Its Znyth zinc battery was made to outperform conventional lithium-ion technology.
Since sustainable energy stocks haven’t been in the biggest favor this year, shares of many companies, including EOSE stock, are down for the year. Throw in some missed quarterly expectations, and it makes sense that the penny stock hit new 52-week lows in May.
EOSE Stock Short Interest
Nevertheless, Eos could be in focus among those looking for short squeeze stocks. Fintel and TD Ameritrade show the EOSE stock short float between 28.21% and 29.66%.
Meta Materials Inc. (MMAT)
Like sustainable energy stocks, tech stocks haven’t been in favor either this year. However, that hasn’t been the case lately, and many, including Meta Materials, have experienced a strong rebound. Meta develops functional materials and nanocomposites.
This week the company announced a deal with paint and coating company PPG (NYSE: PPG). The two inked a memorandum of understanding to create new ophthalmic smart devices for extended reality applications. Thanks to the uptick of interest in things like the metaverse, hardware is becoming as important as software. The new Meta & PPG collaboration focuses on creating a dynamic dimming function for Meta’s NANOWEB conductive film. It will also include PPG’s electrochromic gels.
“A key challenge for XR eyewear developers is to overcome high-brightness ambient lighting, such as outdoors on a sunny day…Ramping up display power in these settings greatly shortens battery life. Dynamic dimming should enable a more readable display with more efficient power use.”
Jonathan Waldern, CTO of META
MMAT Stock Short Interest
MMAT stock doesn’t have the highest short interest compared to other names on this list of penny stocks. But it doesn’t discount that both Fintel and TD show a short float percentage in the double digits. Fintel puts this figure around 17.5%, while TD has it higher at nearly 22%.
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Blue Apron Holdings Inc. (APRN)
If you’ve traded penny stocks for at least a year, you’re familiar with the “saga” that is Blue Apron. Shares surged in 2021 thanks to growing interest in “stay at home stocks.” APRN stock climbed to highs of over $12. Things are much different now as the world continues reopening.
Some missed earnings for the first quarter have put pressure on the penny stock. In its latest quarter, revenue dropped 9% from a year ago while earnings per share missed expectations by a wide margin.
Even with this case, some investors remain bullish on the penny stock. Historically bearish, Citron Research is bullish on the penny stock. In a May 10th tweet, the firm said, “$APRN Just signed off investor day…either management are group of lying sociopaths on profitability or this stock going right back to $10.”
In late May, Blue Apron also added new strategic partnerships helping boost optimism in the penny stock. It signed Blue Cross Blue Shield and Planet Fitness for its Wellness360 platform.
APRN Stock Short Interest
What is the APRN short float percentage? Based on the latest data from TD Ameritrade and Fintel, the figure sits between 29.05% and 33.18%.
Penny Stocks To Watch This Week
Whether you’re looking for short squeeze stocks or something else, a plan is important. Outlining your profit targets, stop losses, and potential reentry points will help. Today, we looked at a handful of stocks with higher short interest. Whether or not they actually “squeeze” is something only time will tell. For now, they could be some of the top penny stocks to watch as the stock market attempts to continue rallying.