{"id":132227,"date":"2025-05-14T15:35:49","date_gmt":"2025-05-14T15:35:49","guid":{"rendered":"https:\/\/teknomers.com\/en\/one-of-the-stocks-investors-are-targeting-for-short-selling\/"},"modified":"2025-05-14T15:35:49","modified_gmt":"2025-05-14T15:35:49","slug":"one-of-the-stocks-investors-are-targeting-for-short-selling","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/one-of-the-stocks-investors-are-targeting-for-short-selling\/","title":{"rendered":"One of the Stocks Investors Are Targeting for Short Selling"},"content":{"rendered":"
\n

Understanding Short Interest in Stocks<\/h2>\n

\n Short interest refers to the **percentage** of publicly available shares that have been sold short. This metric serves as an **indicator** for many investors in determining how strong a company\u2019s bear thesis may be. Given the **nature** of short selling, short interest has become a popular indicator among investors.\n <\/p>\n

The Significance of High Short Interest<\/h2>\n

\n The weight given to high short interest is justified as investors betting against a stock typically conduct in-depth **research** and are confident in a company’s downfall. These short-sellers face unlimited risks, which is why attention is paid when influential investors or smart money take short positions. Investigating the **red flags** that might have influenced the elevated short interest is common practice among cautious investors.\n <\/p>\n

Researching Underperforming Stocks<\/h2>\n

\n Our analysis delved deeper into the factors revealing where **smart money** perceives potential trouble. To compile our list of **20 underperforming stocks targeted by short sellers**, we focused on the worst-performing stocks over the past six months and ranked them by their short interest.\n <\/p>\n

\n
\n
\n \"Is\n <\/div>\n<\/p><\/div>
\n Is Caleres, Inc. (CAL) the Underperforming Stock Targeted By Short Sellers?
\n <\/figcaption><\/figure>\n

Caleres, Inc. Overview<\/h2>\n

\n **Caleres, Inc.** (NYSE:CAL) operates as a **developer**, **designer**, **manufacturer**, **sourcer**, and **seller** of footwear. The company generates its revenue through two main segments: the **Brand Portfolio** and **Famous Footwear**. Their range includes private-label, licensed, and branded athletic, dress, and casual footwear products.\n <\/p>\n

Recent Performance and Challenges<\/h2>\n

\n The company’s recent sales performance demonstrates challenges, with **Famous Footwear** comparable sales decreasing by **3%** and **Brand Portfolio** sales declining by **7%**. High fixed costs coupled with declining sales contribute to margin pressures; **Caleres’** operating margins diminished significantly from **5%** to **2%** in the fourth quarter, and for the full year, the margins fell by **5.8%**.\n <\/p>\n

Capital Allocation and Financial Risks<\/h2>\n

\n The capital allocation decisions at Caleres highlight further risks. In **2024**, the company chose to prioritize **shareholder** returns over debt repayment, leading to an increase in its debt from **$190 million** to **$220 million**. The recent acquisition of **Stuart Weitzman** is expected to cost around **$105 million**, escalating debt by **50%**. This brand, currently unprofitable, will demand significant investments, likely placing further strain on margins.\n <\/p>\n

Ranking Among Underperforming Stocks<\/h2>\n

\n Overall, **CAL** ranks **12th** on our list of underperforming stocks targeted by short sellers. While we recognize CAL’s potential as an investment opportunity, we believe certain **AI stocks** exhibit greater promise for generating higher returns within a shorter timeframe. For example, an AI stock has appreciated since early **2025**, while many popular AI stocks have dropped by approximately **25%**. If you’re interested in a more promising AI stock trading at less than **5 times its earnings**, our report on the cheapest AI stock<\/b><\/a> offers valuable insights.\n <\/p>\n<\/div>\n

Finance and Crypto News-7<\/a><\/p>\n

Tm-En-7<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Understanding Short Interest in Stocks Short interest refers to the **percentage** of publicly available shares that have been sold short. This metric serves as an **indicator** for many investors in determining how strong a company\u2019s bear thesis may be. Given the **nature** of short selling, short interest has become a popular indicator among investors. The […]<\/p>\n","protected":false},"author":1,"featured_media":108984,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23832],"tags":[],"class_list":["post-132227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/132227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=132227"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/132227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/108984"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=132227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=132227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=132227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}