For investors looking to hedge or speculate, there are many reasons why one would short sell a stock. While bi-monthly short interest FINRA data is useful for determining a broad gauge of the 'most hated' stocks on the Street, it's important to note that an abnormally high short interest can lead to a short squeeze. Though tough to pinpoint, recent short squeeze scenarios include Tesla Motors Inc (NASDAQ:TSLA), among others, but generally speaking, a short interest percentage above 30% (of float) indicates a level that retail investors should stay cautious of.
The stock price of Disney has been in a general uptrend over the past 12 months, and is now up more than 40% from a year ago. Logically speaking, this makes Disney an unfavorable candidate for short sellers, but there are still a few bears out there. Please see Insider Monkey for more details about the most short sold stocks.
