Author:
S3 Research Team
Kohl’s (KSS) remains one of the most shorted stocks in the Russell 1000, with 41% of its float sold short. The stock’s squeeze score rises on rallies but fades as the price declines. Despite a recent short squeeze risk, short interest remained high, and bearish sentiment persists, with analysts increasingly recommending selling.
KSS is one of the most crowded shorts, with 41% of the float short. It is the second highest short position in the Russell 1000.
The crowded score typically falls between 75 and 85.
The squeeze score spikes when the stock rises but falls when the stock drops.
The stock has trended down all year, with occasional rallies pushing the squeeze score above 70.
This happened 1-2 weeks ago, but the stock is lower now, reducing squeeze risk.
Despite a high squeeze score, short interest did not decrease during the recent rally, preventing a squeeze.
When the squeeze score is above 70, short interest typically rises by 5-10%, signaling a reversal strategy.
40% of analysts recommend selling, nearly double from a year ago.
The news has been negative and have been correlated with higher short positions.
Kohl’s (KSS) continues to be dominated by short sellers, with little sign of bullish reversal. While squeeze risks increase temporarily during rallies, persistent short interest, and negative news sentiment weigh on the stock. Analyst downgrades further reinforce the bearish outlook, suggesting continued pressure unless fundamental changes drive renewed investor confidence.
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