Short sellers are aggressively closing their positions in FuelCell Energy Inc (NASDAQ:FCEL). According to the latest data from Nasdaq, short interest in the stock plunged from 33.4 million on May 30 to 32.4 million on June 13. The number of FuelCell shares sold short was even higher on May 15 at 35.48 million. The average daily trading volume is 5.9 million shares. So, it would take short sellers 5.5 days to close their positions.

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Short sellers also losing interest in FuelCell peers

Currently, 14.8% shares of FuelCell Energy are held short. FuelCell peers have also seen a decline in short interest in June. For example, Plug Power Inc (NASDAQ:PLUG) witnessed a 12% decline in short interest between May 30 and June 13. Well-known investor Whitney Tilson of Kase Capital is shorting both Plug Power and FuelCell Energy. Kase Capital says these stocks are worth less than a dollar.

FuelCell reported its fiscal second quarter results on June 3. The company reported a loss of 4 cents on revenues of $38.27 million. Analysts were expecting a loss of 4 cents with $44.73 million in revenues. However, the Danbury-based company has a huge backlog. So, the company issued an optimistic guidance for the third and fourth quarters. FuelCell forecasts Q3 and Q4 revenues to come in the range of $50-$60 million each. The company expects to reach break-even by the end of this year.

FuelCell received $4.4 million in federal grants

In June, FuelCell Energy received $4.4 million in grants from the Department of Energy to develop new technologies. The company will work with the University of Connecticut and the Pacific Northwest National Laboratory to build fuel cell stacks capable of converting natural gas or biogas into methanol. In another project, the company will develop an electrochemical reactor that can produce hydrogen where it’s needed instead of large plants. It will eliminate the transportation costs and reduce carbon emissions.

FuelCell Energy shares fell 0.83% on Monday to close at $2.40.