We recently released a list 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we will explore Delta Air Lines, Inc. (NYSE:DAL) position with other most crowded hedge fund stocks targeting short sellers.

Hedge funds pile up into stocks is a signal of belief. After all, if institutional investors are supporting a company, there must be a good reason, right?

Things get interesting when the same stock ends up with a short interest. Some investors support where the company is successful, others bet on its downfall. This contradiction is often tracked eagerly by investors, as it can lead to explosive movements between the two sides.

For example, consider a scenario where stocks held by high interest and high hedge funds begin to rise. Short sellers are rushing to close their positions when everyone is rushing to buy more of the already popular stocks, triggering a strong bull rally.

We decided to shortlist the stock of candidates who are most likely to attend the rally. To list our 15 most crowded hedge fund stocks that are targets for short sellers, we only considered at least $1 billion in market cap, with short-term interest of at least 3%. We then rank these stocks in the number of hedge funds in their portfolio.

Aerial view of a commercial aircraft taking off from a coastal hub.

Number of hedge fund holders: 84

Short interests: 3.39%

Delta Air Lines, Inc. (NYSE:DAL) Provides scheduled air transport for cargo and passengers. It generates revenue through the segments of refineries and airlines. The company also provides repair, aircraft maintenance, engineering support and overhaul services. Jefferies lowered the stock from buying to holding last month. The company is cautious because consumer sentiment remains weak and tariffs may continue to negatively impact investors' perceptions.

Delta Air Lines (NYSE:DAL) exceeded earnings expectations for first-quarter financial results. But due to macroeconomic conditions, it lowered its full-year guidance. CEO Ed Bastian said growth has gradually declined due to widespread economic uncertainty surrounding global trade.

CEO Ed Bastian mentioned:

“In this slower growth environment, we protect margins and cash flow by focusing on what we can control. This includes reducing the capacity growth planned for the second half of the year to flat last year while actively managing costs and capital expenditures.”