A short squeeze happens when a heavily shorted stock’s price rises sharply, forcing short sellers to buy back shares to cover their positions, which drives the price even higher. Key ingredients include high short interest, a low float, and a catalyst (like strong earnings, news, or retail investor frenzy). Let’s look at Kohl’s through this lens:
Short Interest: As of early April 2025, Kohl’s had a short interest of about 49 million shares, or roughly 61.44% of its float, which is high compared to its peers (average peer short interest is around 8.4%). High short interest is a prerequisite for a squeeze, as it means there’s a lot of potential buying pressure if shorts need to cover. However, this alone isn’t enough—GameStop’s 2021 squeeze had short interest over 100% at its peak, so Kohl’s is notable but not extreme.
Float and Liquidity: Kohl’s float (shares available for trading) is decently sized, which can dilute the impact of a squeeze compared to a small-cap stock with a tiny float. A larger float means it takes more buying volume to move the price significantly, making a squeeze harder to sustain unless there’s massive coordinated interest.
Recent Price Action: Kohl’s stock jumped 8% to $7.17 on April 7, 2025, with above-average volume, driven by optimism around inventory and expense management. But it’s also been volatile, with a 31% drop after cautious 2025 guidance and a 75% dividend cut earlier in March. The low price ($7-ish) makes it accessible to retail traders, who often fuel meme-driven squeezes, but it also reflects weak fundamentals, which can deter sustained buying.
Catalysts: There’s no clear catalyst right now. Kohl’s is closing 27 stores by April 2025, signaling struggles in brick-and-mortar retail. Analyst sentiment is mixed—Bank of America sees challenges in rebuilding sales, and
Market Context: Recent market volatility, driven by tariff fears and a 10%+ S&P 500 drop, has boosted short sellers’ profits broadly ($159 billion in six days). This suggests shorts are confident, and Kohl’s, with its retail exposure, could stay under pressure unless something disrupts the bearish narrative. A short-covering rally could happen if broader market sentiment shifts, but Kohl’s fundamentals (declining sales, earnings revisions down 94%) don’t scream “bullish.”
Counterpoints: Kohl’s short interest has actually fallen 9.98% recently, suggesting some shorts are already covering, which could reduce squeeze potential. Also, department stores like Macy’s and JCPenney are struggling too, so Kohl’s isn’t uniquely positioned for a breakout. Retail investor coordination (like on Reddit or X) would need to ramp up significantly, and there’s no evidence of that scale yet.
Conclusion: Kohl’s has some ingredients for a short squeeze—high short interest and a low stock price—but it lacks a strong catalyst and the kind of retail frenzy needed to ignite one. Its fundamentals are shaky, and recent news (store closures, dividend cuts) leans bearish. It’s a stock to watch if you’re into high-risk plays, but it’s not screaming “next GameStop” right now. Always dig into the numbers and consider the broader market—things can shift quickly.
Short Interest: As of early April 2025, Kohl’s had a short interest of about 49 million shares, or roughly 61.44% of its float, which is high compared to its peers (average peer short interest is around 8.4%). High short interest is a prerequisite for a squeeze, as it means there’s a lot of potential buying pressure if shorts need to cover. However, this alone isn’t enough—GameStop’s 2021 squeeze had short interest over 100% at its peak, so Kohl’s is notable but not extreme.
Float and Liquidity: Kohl’s float (shares available for trading) is decently sized, which can dilute the impact of a squeeze compared to a small-cap stock with a tiny float. A larger float means it takes more buying volume to move the price significantly, making a squeeze harder to sustain unless there’s massive coordinated interest.
Recent Price Action: Kohl’s stock jumped 8% to $7.17 on April 7, 2025, with above-average volume, driven by optimism around inventory and expense management. But it’s also been volatile, with a 31% drop after cautious 2025 guidance and a 75% dividend cut earlier in March. The low price ($7-ish) makes it accessible to retail traders, who often fuel meme-driven squeezes, but it also reflects weak fundamentals, which can deter sustained buying.
Catalysts: There’s no clear catalyst right now. Kohl’s is closing 27 stores by April 2025, signaling struggles in brick-and-mortar retail. Analyst sentiment is mixed—Bank of America sees challenges in rebuilding sales, and
Market Context: Recent market volatility, driven by tariff fears and a 10%+ S&P 500 drop, has boosted short sellers’ profits broadly ($159 billion in six days). This suggests shorts are confident, and Kohl’s, with its retail exposure, could stay under pressure unless something disrupts the bearish narrative. A short-covering rally could happen if broader market sentiment shifts, but Kohl’s fundamentals (declining sales, earnings revisions down 94%) don’t scream “bullish.”
Counterpoints: Kohl’s short interest has actually fallen 9.98% recently, suggesting some shorts are already covering, which could reduce squeeze potential. Also, department stores like Macy’s and JCPenney are struggling too, so Kohl’s isn’t uniquely positioned for a breakout. Retail investor coordination (like on Reddit or X) would need to ramp up significantly, and there’s no evidence of that scale yet.
Conclusion: Kohl’s has some ingredients for a short squeeze—high short interest and a low stock price—but it lacks a strong catalyst and the kind of retail frenzy needed to ignite one. Its fundamentals are shaky, and recent news (store closures, dividend cuts) leans bearish. It’s a stock to watch if you’re into high-risk plays, but it’s not screaming “next GameStop” right now. Always dig into the numbers and consider the broader market—things can shift quickly.
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Use the following link to access trading ideas: patreon.com/SniperTraderStocks?utm_medium=unknown&utm_source=join_link&utm_campaign=creatorshare_creator&utm_content=copyLink
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.