10 Heavily Shorted Stocks Seeing Institutional Buying

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 |  Includes: ARUN, BZH, CAVM, OPEN, QNST, RAX, RBCN, SPY, SQNM, TLB, WNR
by: Kapitall

The following is a list of heavily shorted stocks that have seen institutional inflows over the last 3 months. Are short-sellers too pessimistic about these names, or are big money managers perhaps betting on a short-covering rally?

All of the stocks in this list have short floats in excess of 20%, with net positive institutional inflows over the last 3 months. Short float data sourced from Finviz, institutional trading data sourced from Reuters.com.

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1. The Talbots Inc. (NYSE:TLB): Apparel Stores Industry. Market cap of $724M. Short float at 21.34%, which implies a short ratio of 4.89 days. Institutional investors currently own 82,815,930 shares vs. 48,375,985 shares held 3 months ago (+71.19% change). The stock has gained 48.49% over the last year.

2. Sequenom Inc. (NASDAQ:SQNM): Biotechnology Industry. Market cap of $467M. Short float at 26.07%, which implies a short ratio of 8.05 days. Institutional investors currently own 41,064,589 shares vs. 26,635,767 shares held 3 months ago (+54.17% change). The stock has gained 6.69% over the last year.

3. Beazer Homes USA Inc. (NYSE:BZH): Residential Construction Industry. Market cap of $332M. Short float at 25.65%, which implies a short ratio of 5.8 days. Institutional investors currently own 63,456,348 shares vs. 44,065,891 shares held 3 months ago (+44.% change). The stock has gained 5.78% over the last year.

4. QuinStreet, Inc. (NASDAQ:QNST): Advertising Agencies Industry. Market cap of $551M. Short float at 22.56%, which implies a short ratio of 19.31 days. Institutional investors currently own 15,552,028 shares vs. 10,858,198 shares held 3 months ago (+43.23% change).

5. Rackspace Hosting, Inc (NYSE:RAX): Internet Software & Services Industry. Market cap of $2,624B. Short float at 24.97%, which implies a short ratio of 12.09 days. Institutional investors currently own 90,736,939 shares vs. 63,884,522 shares held 3 months ago (+42.03% change). The stock has gained 50.97% over the last year.

6. Rubicon Technology, Inc. (NASDAQ:RBCN): Semiconductor Industry. Market cap of $562M. Short float at 61.24%, which implies a short ratio of 11.34 days. Institutional investors currently own 27,575,631 shares vs. 22,453,533 shares held 3 months ago (+22.81% change). The stock has gained 87.96% over the last year.

7. Western Refining Inc. (NYSE:WNR): Oil & Gas Refining & Marketing Industry. Market cap of $427M. Short float at 27.98%, which implies a short ratio of 8.97 days. Institutional investors currently own 41,762,368 shares vs. 34,605,697 shares held 3 months ago (+20.68% change). The stock has lost -17.38% over the last year.

8. OpenTable, Inc. (NASDAQ:OPEN): Business Services Industry. Market cap of $1,290B. Short float at 20.03%, which implies a short ratio of 13.93 days. Institutional investors currently own 23,404,417 shares vs. 19,655,195 shares held 3 months ago (+19.07% change). The stock has gained 112.07% over the last year.

9. Cavium Networks, Inc. (NASDAQ:CAVM): Semiconductor Industry. Market cap of $1,119B. Short float at 21.18%, which implies a short ratio of 7.48 days. Institutional investors currently own 47,876,556 shares vs. 40,259,405 shares held 3 months ago (+18.92% change). The stock has gained 19.59% over the last year.

10. Aruba Networks, Inc. (NASDAQ:ARUN): Computer Peripherals Industry. Market cap of $1,830B. Short float at 20.62%, which implies a short ratio of 9.51 days. Institutional investors currently own 109,368,243 shares vs. 96,019,623 shares held 3 months ago (+13.9% change). The stock has gained 106.66% over the last year.

Disclosure: No position