Tim Smith

The technology sector continues to dominate shorting activity for the third consecutive month, with major names like Apple, IBM, Super Micro Computer, SoFi Technologies, and Texas Instruments leading the list of the large-cap companies with the largest proportions of outstanding shares sold short, according to the February 2025 Hazeltree Shortside Crowdedness Report. This ongoing trend underscores the evolving market sentiment around the tech industry, perhaps reflecting both investor skepticism and the sector’s resilience despite ongoing economic headwinds.

Our latest analysis, drawn from Hazeltree’s proprietary securities finance platform, captures data from approximately 15,000 global equities across the Americas, Europe, the Middle East, and Africa, and the Asia-Pacific regions. The data is aggregated and anonymized from around 700 asset manager funds within the Hazeltree community. Each security is assigned a Crowdedness Score, measured on a scale from 1 to 99, reflecting the concentration of shorting activity. A score of 99 represents the highest level of crowdedness, highlighting stocks that are targeted by the highest number of short sellers.

Tech Sector Resilience Amid Market Turbulence

Despite ongoing market volatility, the technology sector has shown notable resilience. While the industry experienced waves of layoffs in 2024, February’s data reveals a more nuanced picture. Layoffs continued, albeit at a slower pace, but job postings surged, unemployment remained low, and the IT job market contracted. This suggests that the tech sector is recalibrating rather than collapsing. Companies appear to be shifting workforce strategies to focus on operational efficiency, automation, and strategic innovation.

One of the most notable names in the sector is Super Micro Computer, Inc., which was the second-most crowded large-cap stock, with a Crowdedness Score of 91. Super Micro also led in institutional supply utilization, reaching 53.27%, for the third consecutive month. This sustained high level, showing how much available stock is being lent out to short sellers, signals investor caution about the company’s growth trajectory and competitive standing in the evolving data center and high-performance computing market.

Beyond the tech sector, Chevron Corporation maintained its position as the most crowded security across all sectors, with a perfect Crowdedness Score of 99. The ongoing trend reflects persistent investor concerns about the company’s performance, particularly against the backdrop of fluctuating global oil prices, geopolitical tensions, and the shift towards renewable energy alternatives. Chevron’s sustained crowdedness underscores the complex market forces impacting traditional energy giants.

Global Shorting Trends: EMEA and APAC

Beyond the Americas, shorting activity remains significant across EMEA and APAC markets, with several key names emerging as consistent targets for short sellers.

In EMEA, luxury fashion conglomerate Kering SA and Swedish retail powerhouse H&M both earned crowdedness scores of 99. H&M, in particular, exhibited an impressive institutional supply utilization rate of 76.34% for the eighth consecutive month. This sustained short interest reflects ongoing concerns over the retailer’s ability to maintain profitability amid shifting consumer behavior, rising material costs, and increased competition from fast fashion disruptors.

Mid-cap stocks in EMEA also attracted heightened shorting activity. Kingfisher plc, BE Semiconductor Industries NV, and Delivery Hero SE all secured Crowdedness Scores of 99, signaling market skepticism around their growth trajectories. The semiconductor industry, in particular, continues to face supply chain disruptions, increased production costs, and evolving technology demands, which may be contributing to short sellers’ focus on BE Semiconductor Industries NV.

In the small-cap category, Alphawave IP Group plc retained its top spot for the third month in a row. The company remains under intense short-selling pressure, reflecting concerns over its ability to scale operations, secure new clients, and navigate an increasingly competitive semiconductor landscape.

In APAC, Japanese tool maker Disco Corporation, which supplies the semiconductor industry, repeated its January ranking with a crowdedness score of 99. The sustained interest reflects the company’s exposure to global semiconductor trends and market headwinds. MTR Corp. Ltd., a major player in Hong Kong’s transportation infrastructure, led the region in institutional supply utilization at 21.07%, whichsignals ongoing short interest, likely driven by prolonged economic uncertainty and shifts in regional transportation demand.

Kokusai Electric Corporation also maintained its leading mid-cap position with a crowdedness score of 99 and a strong institutional supply utilization rate of 51.66%. The sustained short interest in this company reflects investor concerns about the  growth outlook, supply chain stability, and competitive positioning within the semiconductor industry.

Digging Deeper: Beyond Crowdedness Scores

Hazeltree’s analysis goes beyond crowdedness scores to capture a more comprehensive view of market sentiment. The institutional supply utilization data tracks how much available stock is being lent out to short sellers. This provides insight into the depth of short interest and potential market imbalances.

For example, Wolfspeed, Inc. continues to dominate the small-cap category in the Americas with a perfect crowdedness score of 99 for the seventh consecutive month, likely reflecting ongoing investor skepticism about the company’s ability to scale production and deliver consistent revenue growth, particularly within the high-stakes semiconductor market.

Enovix Corporation, another standout small-cap stock, reported the highest institutional supply utilization rate at 85.91%. Such a level of sustained short interest signals significant market pessimism about the company’s future performance, profitability, and ability to meet operational targets. High utilization rates often point to a stock that short sellers view as overvalued or fundamentally weak.

We also track the Hazeltree Community Borrow Fee — an important metric representing the average cost funds on our platform pay to borrow a given security. A higher borrowing fee typically signals strong demand for shorting that stock, indicating increased market skepticism or potential volatility ahead. Rising borrow fees can serve as an early indicator of shifting market sentiment, helping investors fine-tune their strategies.

Key Takeaways and Market Implications

The February 2025 Hazeltree Shortside Crowdedness Report offers vital insights into evolving market behavior, highlighting securities that are attracting the most concentrated shorting activity globally. As the tech sector continues to dominate the shorting landscape, the data underscores the sector’s unique position — balancing resilience with recalibration. Investors appear to remain wary, shorting high-profile names despite signs of operational recovery and innovation.

Beyond tech, persistent shorting activity in EMEA’s retail and semiconductor sectors, coupled with APAC’s focus on industrial and technology companies, illustrates the varied global landscape for short sellers..

Tim Smith is a managing director of data insights at Hazeltree.

This feature is to provide general information only, does not constitute legal or tax advice, and cannot be used or substituted for legal or tax advice. Any opinions of the author do not necessarily reflect the stance of ISS STOXX or its affiliates.

Tags: equity investments, Hazeltree, Large Cap Stocks, short selling, Tim Smith