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Most Shorted Stock April: [Stock Name/Sector]
- capital One Financial (NYSE: COF) topped Hazeltree's Shortside Crowdedness Report as the most shorted stock in April.The report, which analyzes data from approximately 700 hedge funds and asset...
- the surge in shorting activity is likely tied to Capital One's pending merger with Discover Financial (NYSE: DFS), expected to close on May 18.
- Tim Smith, managing director of Data Insights at hazeltree, noted that new tariffs and market volatility kept short-sellers active in April.
Capital One Financial (COF) leads as the most shorted stock in April, topping Hazeltree’s shortside Crowdedness Report with a score of 99. this surge in shorting activity is primarily linked to its upcoming merger with Discover Financial (DFS), as investors wager on a potential stock price decline. The SPDR S&P 500 ETF (SPY) also made a surprising appearance among the top shorted investments, signaling possible concerns about the broader large-cap market, perhaps due to recession fears. Other notable companies with high crowdedness scores include Charter Communications and microstrategy. Tim Smith from Hazeltree notes that new tariffs and market volatility kept short-sellers active. For in-depth financial insights, News Directory 3 regularly monitors market sentiment.Discover what’s next after this pivotal merger and how these trends will evolve.
Capital One Most Shorted Stock in April Amid Discover Merger
Updated May 31, 2025
capital One Financial (NYSE: COF) topped Hazeltree’s Shortside Crowdedness Report as the most shorted stock in April.The report, which analyzes data from approximately 700 hedge funds and asset managers, revealed that Capital One had the highest crowdedness score of 99, indicating a notable percentage of funds shorting the stock.
the surge in shorting activity is likely tied to Capital One’s pending merger with Discover Financial (NYSE: DFS), expected to close on May 18. Investors are seemingly betting against Capital One, anticipating a potential decline in its stock price following the merger.
Tim Smith, managing director of Data Insights at hazeltree, noted that new tariffs and market volatility kept short-sellers active in April. He also highlighted the unexpected appearance of the SPDR S&P 500 ETF (NYSE: SPY) among the top 10 most shorted large-cap investments, reflecting ample outflows despite its active trading status. The SPDR S&P 500 ETF, a key indicator of market sentiment, ranked eighth with a score of 82, suggesting some hedge fund managers anticipate limited upside in large-cap stocks, possibly due to recession concerns and tariff impacts.
Other companies with high crowdedness scores include Charter Communications (NASDAQ: CHTR) at 91 and MicroStrategy (NASDAQ: MSTR) at 88.IBM (NYSE: IBM), Super Micro computer (NASDAQ: SMCI), and Chevron (NYSE: CVX) followed with scores of 85. Live Nation Entertainment (NYSE: LYV), ON Semiconductor (NASDAQ: ON), and Dell Technologies (NYSE: DELL) rounded out the top 10.
Super Micro Computer led in institutional supply utilization at 52.84%, marking its fifth consecutive month in this position. This metric indicates the percentage of a security’s supply being lent out by institutional investors,reflecting its demand in the market.
in the mid-cap category, Murphy USA (NYSE: MUSA) was the most shorted stock, while JetBlue Airways (NASDAQ: JBLU) held the top spot among small-caps for the second month.
What’s next
Investors will be watching the performance of Capital One and Discover Financial following thier merger, as well as the broader market trends influencing short-selling activity.