Jabran Kundi
3 min read
In This Article:
We recently published a list of 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we are going to take a look at where Quanta Services, Inc. (NYSE:PWR) stands against other most crowded hedge fund stocks that are targeted by short sellers.
Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right?
Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side.
Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally.
We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio.
A team of electricians climbing an industrial wiring structure, the complexity of the project revealed in the background.
Number of Hedge Fund Holders: 67
Short Interest: 3.42%
Quanta Services, Inc. operates as an infrastructure solutions provider. It offers its solutions for the pipeline, electric, and gas utility, communications, energy, and renewable energy industries. The company operates through Electric Power Infrastructure Solutions, Renewable Energy Infrastructure Solutions, and Underground Utility and Infrastructure Solutions segments.
Puerto Rico recently experienced a significant power outage affecting nearly 1.4 million customers, with 400,000 also losing access to water. Luma Energy, which is a joint venture between Canadian energy firm ATCO and Quanta Services, reported that vegetation on transmission lines and technical issues caused the blackout. Power was restored to 56.3% of the company’s total customers by 1 p.m. EST.
An analyst at Piper Sandler recently started coverage on the company with an Overweight rating. The firm showed optimism for the stock despite the recent outage. It named PWR as its top pick, amidst short-term uncertainties about recent policy shifts.
