Financial News

Short Sellers Are Back in Cannabis Stocks After Retail Mania

(Esteban Lopez/Unsplash)

(Bloomberg) — Short sellers are again betting cannabis stocks will fall after retail investors squeezed their positions out in the Reddit-fueled trading frenzy.

Overall short interest in the 119 U.S. and Canadian cannabis stocks tracked by S3 Partners increased by $346 million to $3.14 billion over the last 30 days, according to a report dated April 29, though that was still $288 million shy from the level when the year started. The short interest as a percentage of float has been up in almost every cannabis stock in the past month, S3 said.

About 98% of short interest in the pot sector was concentrated in 20 stocks. Aphria Inc., (TSE:APHA) Canopy Growth Corp. (TSE:WEED) and Aurora Cannabis Inc. (TSE:ACB) were the most shorted over the last 30 days, while Aurora and Tilray Inc. ranked among the highest in total short interest as a percentage of float at 23.41% and 19.95%, respectively.

The cannabis sector rally reversed course amid the fading retail trading mania. ETFMG Alternative Harvest ETF, known by its ticker MJ, surged 131% from the start of the year to its peak on Feb. 10. From there, it has dropped more than 35%. Sundial Growers Inc., a retail favorite that shot up from below 50 cents to just shy of $3 a share in February, has fallen back under 90 cents.


— Article originally published by Bloomberg

The post Short Sellers Are Back in Cannabis Stocks After Retail Mania appeared first on Market Buzz - Get informed about the companies early investors are buzzing about.

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