Short Interest Monitor: CELH, RGTI, TAP

The latest edition of the Short Interest Monitor features a broad mix of stocks, including multiple biotech firms, AI plays, and beverage companies.

First, short sellers targeted Celsius Holdings (CELH) late last month, leading its short interest to rise nearly 20% from the prior reporting period. After a rough start to the year, the energy drink maker saw its stock briefly rebound in mid-May following a strong first-quarter earnings report. CELH topped analysts' consensus earnings estimates and reported record quarterly revenue of $782.6 million, up 138% year over year. However, short sellers may be focused on relatively weak core Celsius brand sales and potential margin pressure amid the integration of the Alani Nu and Rockstar brands. Despite these concerns, many Wall Street analysts are optimistic. Morgan Stanley, for example, recently reiterated its "overweight" rating and $55 price target for Celsius.

Rigetti Computing (RGTI) shares spiked in late May after the quantum computing company inked a deal with the U.S. Department of Commerce to receive up to $100 million in CHIPS Act funding. The news seemingly wasn't enough to convince short sellers of RGTI's long-term prospects, however. Its short interest rose 26.3% from the prior reporting period in the final two weeks of last month. RGTI reported 193% year-over-year revenue growth in the first quarter, but the company—which is valued at nearly $7 billion—still pulled in just $4.4 million and reported an operating loss of $26 million. Short sellers may be targeting RGTI due to its lofty valuation, recent insider selling, and reliance on government grants.

Molson Coors Beverage Company (TAP) made the Short Interest Monitor for a second straight time amid an ongoing drop in beer sales volumes. Its short interest rose more than 17% from the prior reporting period in late May. Rising fuel and aluminum cost may have helped attract short sellers. Some analysts have expressed concerns about TAP's margins moving forward, arguing it may have difficulty passing rising costs on to customers. TAP also issued $1.5 billion in U.S. dollar-denominated debt and $500 million in Canadian dollar-denominated debt in late May for "general corporate purposes" and to pay down existing debt. The company maintains a relatively healthy balance sheet, but the debt raise could have drawn in some short sellers.

Check out the table below to see the complete Short Interest Monitor, which includes 10 equities with elevated and rising short interest. Each stock has a market cap of at least $2 billion and short interest that represents at least 10% of its outstanding shares.

As always, there were a few high-profile stocks with rising short interest that didn't make our list but have made headlines in recent weeks.

The South Korean e-commerce company Coupang (CPNG) saw its short interest spike 79% from the prior reporting period over the final two weeks in May. This came after its short interest rose 42% from the prior reporting period in early May. CPNG has made headlines in recent weeks after Kevin Warsh was forced to disinvest from the company and leave his position on the board after being named Chairman of the Federal Reserve. CPNG shares have also been under pressure due to margin issues, decelerating growth in its core market, and regulatory expenses after a serious data breach earlier this year. However, despite the recent rise in short interest, just 4% of CPNG's outstanding shares were sold short as of June 10.

Boston Scientific (BSX) also saw its short interest jump 83% from the prior reporting period in the final two weeks of May. The medical device manufacturer has faced increasing competition from Johnson & Johnson (JNJ) and Medtronic (MDT) in its core cardiovascular and medical surgery (MedSurg) businesses. Despite topping Wall Street's consensus earnings and revenue estimates in the first quarter, shares of BSX were down nearly 50% year-to-date through June 10. Muted revenue guidance and falling market share in some key business units may have attracted short sellers last month. However, as of June 10, just 3.8% of BSX shares were sold short.