Short Sellers Can't Make Up Their Minds on Major Banks

Banking, finance, and taxes

Published: February 28, 2018 10:10 am

Last Updated: January 12, 2020 2:56 am

The financial sector was a major part of the Great Recession, and it has been a major part of the recovery and raging bull market since then. Generally speaking, the major financial institutions in the United States are a good barometer of the current state of U.S. markets.

So when short sellers make a play against these major banks, they are effectively betting for a downturn. Conversely, when they back off they might be expecting a surge. Granted, some plays are directly against individual companies, like we saw with Wells Fargo early in 2017.

The February 15 short interest data have been compared with the previous figures, and short interest moves in these selected bank stocks was mixed.

Bank of America Corp. (NYSE: BAC) saw its short interest rise to 140.76 million shares. The previous level was 132.07 million. Shares were last seen trading at $32.66, in a 52-week range of $22.07 to $32.85.

The number of JPMorgan Chase & Co. (NYSE: JPM) shares short dropped to 30.45 million from the previous level of 31.23 million. Shares recently traded at $118.35, in a 52-week range of $81.64 to $119.33.

Citigroup Inc. (NYSE: C) short interest decreased to 25.38 million from the previous level of 27.66 million. Shares were trading at $76.87, in a 52-week range of $56.55 to $80.70.

Wells Fargo & Co. (NYSE: WFC) short interest increased to 39.78 million shares from the previous reading of 35.71 million. Shares were trading at $59.63, within a 52-week range of $49.27 to $66.31.

Short interest in Goldman Sachs Group Inc. (NYSE: GS) decreased to 4.93 million shares from the previous 5.25 million. The stock recently traded at $268.86, within a 52-week range of $209.62 to $273.79.

Morgan Stanley (NYSE: MS) short interest for this settlement date increased to 12.28 million shares from the previous 11.84 million. Shares were changing hands at $57.36, in a 52-week range of $40.06 to $58.05.

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