Nissan Motors (7201 JP) has the highest short interest in the Nikkei 225. Despite recent gains, the stock is still down for the year. Analysts remain negative, and the squeeze score has risen, suggesting a short squeeze may be underway.

Nissan Motors (7201 JP) holds the highest short interest as a percentage of float in the Nikkei 225, at 14.66%. As a result, it also registers the highest crowded score: sixty-five.

Despite this, the stock is up 11% recently in local terms and 12.27% in dollar terms. However, it remains down 26% year-to-date (YTD), with losses of around 10% in each of three separate months.

In contrast, the Nikkei has declined 7.3% YTD in local terms but has gained 1.5% in USD.

Nissan historically has faced challenges with declining US sales, a limited hybrid lineup, downsizing, asset impairments, financial losses, US tariffs, and a failed Honda merger.

The squeeze score indicator combines the crowded score, which is relatively stable, with the short-term return, which is more variable.

The squeeze score has risen to 85, surpassing the key 70 threshold. It exceeded this level multiple times in February and may have triggered a short squeeze when short interest dropped by 15% following a rally.

Analyst sentiment turned against Nissan last year. The stock now has no buy ratings, down from 40%, and 47% of the ratings are sells. Its ratings score is the third worst in the Nikkei.

Nissan has faced negative news coverage for several years.

Poor returns, negative analyst sentiment, and persistent unfavorable news flow have all contributed to Nissan’s large short position and high crowdedness. The recent rally elevated the squeeze score, pushing it above the crowded score.

Under current conditions, a decrease in the short position would indicate a short squeeze.

Nissan Motors (7201 JP) continues to struggle with weak sentiment and underperformance. The recent rally has pushed its squeeze score above the crowded score, signaling potential short squeeze dynamics. Market participants should stay alert to further positioning shifts.

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