Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)

The following is a list of recently downgraded stocks that have seen a significant increase in shares shorted over recent months. If you're a contrarian, this excessive pessimism might raise a flag.

To create this list, we started with a universe of about 50 stocks that have recently been downgraded by Wall Street firms. We then collected data on short trends, and narrowed down the list to only focus on those stocks that have a seen a sharp increase in shares shorted over the past three months. (Note: All short trends described occur between 7/30 - 10/29)

Short trends data sourced from AOL Money, analyst rating changes sourced from RTT News.

click for expanded image

The list has been sorted by change in shares shorted.

1. PartnerRe Ltd. (NYSE:PRE): Property & Casualty Insurance Industry. Market cap of $5.79B. Deutsche Bank downgraded the stock from Buy to Hold on 11/06. Shorted shares have increased from 1.11M to 2.11M (+90.09% increase). Short float at 2.85%, which implies a short ratio of 5.88 days. The stock has gained 3.17% over the last year.

2. Eaton Vance Corp. (NYSE:EV): Asset Management Industry. Market cap of $3.62B. Credit Suisse downgraded the stock from Outperform to Neutral on 11/19. Shorted shares have increased from 4.63M to 7.52M (+62.42% increase). Short float at 6.53%, which implies a short ratio of 9.73 days. The stock has gained 7.33% over the last year.

3. Massey Energy Co. (NYSE:MEE): Industrial Metals & Minerals Industry. Market cap of $5.16B. FBR Capital Markets downgraded the stock from Outperform to Market Perform on 11/23. Shorted shares have increased from 5.02M to 7.89M (+57.17% increase). Short float at 7.77%, which implies a short ratio of 1.66 days. The stock has gained 33.86% over the last year.

4. ReneSola Ltd. (NYSE:SOL): Semiconductor Industry. Market cap of $854.6M. Credit Suisse downgraded the stock from Outperform to Neutral on 11/18. Shorted shares have increased from 1.14M to 1.76M (+54.39% increase). Short float at 3.77%, which implies a short ratio of 0.56 days. The stock has gained 138.26% over the last year.

5. First Industrial Realty Trust Inc. (NYSE:FR): REIT. Market cap of $470.62M. Credit Suisse downgraded the stock from Outperform to Neutral on 11/13. Shorted shares have increased from 8.77M to 13.38M (+52.57% increase). Short float at 22.86%, which implies a short ratio of 12.55 days. The stock has gained 60.09% over the last year.

6. Verint Systems Inc. (NASDAQ:VRNT): Business Software & Services Industry. Market cap of $1.13B. FBR Capital Markets downgraded the stock from Outperform to Market Perform on 11/03. Shorted shares have increased from 108,697 to 158,830 (+46.12% increase). Short float at 1%, which implies a short ratio of 1.21 days. The stock has gained 103.36% over the last year.

7. JA Solar Holdings Co., Ltd. (NASDAQ:JASO): Semiconductor Industry. Market cap of $1.3B. Credit Suisse downgraded the stock from Neutral to Underperform on 11/18. Shorted shares have increased from 10.12M to 14.78M (+46.05% increase). Short float at 11.16%, which implies a short ratio of 1.42 days. The stock has gained 93.94% over the last year.

8. Agnico-Eagle Mines Ltd. (NYSE:AEM): Gold Industry. Market cap of $13.2B. Credit Suisse downgraded the stock from Outperform to Neutral on 11/23. Shorted shares have increased from 5.48M to 7.99M (+45.8% increase). Short float at 4.78%, which implies a short ratio of 3.49 days. The stock has gained 29.86% over the last year.

9. Trina Solar Ltd. (NYSE:TSL): Semiconductor Industry. Market cap of $1.63B. Credit Suisse downgraded the stock from Outperform to Neutral on 11/18. Shorted shares have increased from 4.28M to 6.07M (+41.82% increase). Short float at 8.71%, which implies a short ratio of 1.55 days. The stock has gained 5.4% over the last year.

10. Gildan Activewear Inc. (NYSE:GIL): Textile Industry. Market cap of $3.53B. FBR Capital Markets downgraded the stock from Market Perform to Underperform on 11/13. Shorted shares have increased from 3.3M to 4.23M (+28.18% increase). Short float at 3.81%, which implies a short ratio of 9.26 days. The stock has gained 59.51% over the last year.

11. GT Solar International, Inc. (SOLR): Semiconductor Industry. Market cap of $1.07B. Credit Suisse downgraded the stock from Outperform to Neutral on 11/18. Shorted shares have increased from 10.12M to 12.77M (+26.19% increase). Short float at 8.47%, which implies a short ratio of 3.48 days. The stock has gained 50.21% over the last year.

12. Advance Auto Parts Inc. (NYSE:AAP): Auto Parts Stores Industry. Market cap of $5.59B. FBR Capital Markets downgraded the stock from Outperform to Market Perform on 11/09. Shorted shares have increased from 2.76M to 3.47M (+25.72% increase). Short float at 4.13%, which implies a short ratio of 3.93 days. The stock has gained 68.08% over the last year.

13. UDR, Inc. (NYSE:UDR): REIT Industry. Market cap of $4.04B. FBR Capital Markets downgraded the stock from Outperform to Market Perform on 11/12. Shorted shares have increased from 7.29M to 8.63M (+18.38% increase). Short float at 4.81%, which implies a short ratio of 3.99 days. The stock has gained 54.71% over the last year.

14. Suntech Power Holdings Co. Ltd. (NYSE:STP): Diversified Electronics Industry. Market cap of $1.32B. Credit Suisse downgraded the stock from Neutral to Underperform on 11/18. Shorted shares have increased from 13.19M to 15.2M (+15.24% increase). Short float at 12.12%, which implies a short ratio of 3.82 days. The stock has lost -51.84% over the last year.

15. Atlas Energy, Inc. (NYSE:ATLS): Oil & Gas Drilling & Exploration Industry. Market cap of $3.4B. KeyBanc Capital Markets downgraded the stock from Buy to Hold on 11/10. Shorted shares have increased from 5.9M to 6.53M (+10.68% increase). Short float at 8.71%, which implies a short ratio of 4.5 days. The stock has gained 68.27% over the last year.

Disclosure: No positions