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When considering stocks, it's always helpful to gauge what the rest of the market thinks. One source for that is the number of shares shorted. Companies seeing significant increases in shares shorted are being viewed more negatively, and vice-versa.

We ran a screen on the Utility sector for stocks seeing the most significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were before.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks have upside to price in? Use this list as a starting point for your own analysis.

1. Atlas Energy, L.P (NYSE:ATLS): Engages in the gathering and processing of natural gas in the Mid-Continent and Appalachia regions. Market cap at $1.89B, most recent closing price at $36.78. Shares shorted have decreased from 1.58M to 1.04M over the last month, a decrease which represents about 1.15% of the company's float of 47.00M shares. Days to cover ratio at 5.7 days.

2. Clean Energy Fuels Corp. (NASDAQ:CLNE): Provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. Market cap at $1.24B, most recent closing price at $14.11. Shares shorted have decreased from 18.50M to 17.48M over the last month, a decrease which represents about 1.71% of the company's float of 59.63M shares. Days to cover ratio at 13.22 days.

3. Dynegy Inc. (NYSE:DYN): Engages in the production and sale of electric energy, capacity, and ancillary services in the United States. Market cap at $2.48B, most recent closing price at $20.22. Shares shorted have decreased from 14.51M to 11.92M over the last month, a decrease which represents about 3.7% of the company's float of 69.96M shares. Days to cover ratio at 12.53 days.

4. NRG Energy, Inc. (NYSE:NRG): Operates as a wholesale power generation company. Market cap at $5.3B, most recent closing price at $23.20. Shares shorted have decreased from 18.76M to 10.42M over the last month, a decrease which represents about 3.68% of the company's float of 226.71M shares. Days to cover ratio at 3.75 days.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: Short Sellers Think These 4 Utility Stocks Have Upside Potential