Hazeltree report shows SMCI ahead of Tesla as most shorted security in July

Super Micro Computer Inc. (NASDAQ:SMCI) emerged as the most shorted large-cap security in July, surpassing Tesla Inc. (NASDAQ:TSLA), according to the latest monthly report from Hazeltree.

"Hazeltree's Shortside Crowdedness Report is a monthly listing of the top 10 shorted securities in the Americas, EMEA, and APAC regions in the large-, mid-, and small-cap ranges," explains the firm.

The report, which tracks the short positions of securities across various categories, revealed that SMCI achieved a Hazeltree Crowdedness Score of 99, the highest possible rating, moving up from its score of 82 in June.

Hazeltree says the score indicates that the largest percentage of funds within Hazeltree's community are shorting this stock.

In June, SMCI was already a heavily shorted security, but its crowdedness score increased, reflecting a significant rise in short-selling activity.

Additionally, SMCI also recorded the highest institutional supply utilization rate among large-cap stocks at 22.85%, further emphasizing its status as the most crowded short position.

Tesla, a frequent target of short sellers, came in third with a Hazeltree Crowdedness Score of 94. Despite its high-profile status, Tesla's institutional supply utilization was considerably lower at 2.59%, suggesting that while Tesla remains a popular short target, SMCI has gained more attention among hedge funds and institutional investors in recent weeks.

Other large-cap stocks that featured prominently in the report include Chevron Corp (NYSE:CVX), with a score of 97, and Charter Communications (NASDAQ:CHTR), with a score of 84. Boeing (NYSE:BA) came in sixth with a score of 81.

The Hazeltree report highlights the shifting dynamics in the market, with SMCI's rise to the top spot illustrating changing investor sentiment and strategies.