Is Major Bank Short Interest Signaling a Turnaround?

Banking, finance, and taxes

Published: January 28, 2019 8:40 am

Last Updated: January 31, 2020 1:31 am

The financial sector was a major part of the Great Recession, and it was a major part of the recovery and raging bull market afterward. 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 January 15 short interest data have been compared with the previous figures, and short interest in most of these selected big bank stocks decreased.

Bank of America Corp. (NYSE: BAC) saw its short interest decrease to 132.40 million shares. The previous level was 144.28 million. Shares were last seen trading at $29.58, in a 52-week range of $22.66 to $33.05.

The number of JPMorgan Chase & Co. (NYSE: JPM) shares short fell to 20.24 million from the previous level of 22.02 million. Shares most recently traded at $103.39, in a 52-week range of $91.11 to $119.33.

Citigroup Inc. (NYSE: C) short interest decreased to 19.62 million from the previous level of 20.62 million. Shares were trading at $64.02, in a 52-week range of $48.42 to $80.70.

Wells Fargo & Co. (NYSE: WFC) short interest shrank to 28.80 million shares from the previous reading of 31.07 million. Shares were trading at $50.13, within a 52-week range of $43.02 to $66.31.

Short interest in Goldman Sachs Group Inc. (NYSE: GS) increased to 7.34 million shares from the previous 4.96 million. The stock traded at $200.74, in a 52-week range of $151.70 to $275.31.

Morgan Stanley’s (NYSE: MS) short interest for this settlement date was 13.05 million shares, down from the previous 15.86 million. Shares were changing hands at $42.98, in a 52-week trading range of $36.74 to $59.38.

24/7 Wall St.
The 6 Most Shorted NYSE Stocks

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%¹ today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps