Chevron (NYSE:CVX) took the top spot as the most shorted large-cap U.S. stock in April, surpassing even Tesla (TSLA), as reported by data and tech firm Hazeltree. This marks a significant shift, as Chevron had been holding the second spot for the past three months. Short interest in Chevron surged by over $500 million in April, with around 9% of the company’s total stock being used for shorting, up from 7% in the previous month.
The increase in bets against Chevron came as oil prices declined and as the company faced scrutiny over its proposed acquisition of Hess. Despite these challenges, Chevron’s stock has performed well, gaining nearly 10% year-to-date and adding 1.4% in April.
Recently, Senate Majority Leader Chuck Schumer raised concerns about the proposed acquisition, warning that it could potentially lead to higher gas prices. This adds another layer of complexity to the situation for Chevron.
DailyBubble sees the rise in short interest in Chevron as a reflection of the uncertainties in the oil market and the regulatory environment surrounding the company. While short sellers are betting against Chevron, the company’s strong performance so far this year suggests that investors are still confident in its long-term prospects.