There’s money to be made when companies get shorted…if everything works out as planned. Recently, S3 Partners offered up a list of some of the biggest short targets around. Several of these companies saw share prices plunge in today’s trading.
The list’s leader is none other than Silvergate Capital (NYSE:SI), which took a beating thanks to the ongoing troubles in the cryptocurrency market. However, when it suspended its transfer network, that may have been the last straw for many investors. Following up Silvergate at number two was Bed Bath & Beyond (NASDAQ:BBBY), which has not only had trouble paying suppliers but also launched plans to close a string of stores throughout the U.S.
Carvana (NYSE:CVNA) followed up at number three, promptly followed by WeWork (NYSE:WE) and Upstart Holdings (NASDAQ:UPST). Each has seen its share of troubles of late, from Carvana losing its license to physically sell in Michigan to WeWork’s ongoing struggles to get people back into offices amid a fairly crowded environment of coworking spaces.
Of the five companies listed, interestingly, two of them carry downside risk based on analyst consensus. Those two are Bed Bath & Beyond, considered a Strong Sell, and Upstart Holdings considered a Moderate Sell. Bed Bath & Beyond’s average price target of $1.21 gives it a 12.95% downside risk. Meanwhile, Upstart’s average price target of $15 gives it a 19.35% downside risk.
