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The 5 Most Shorted NYSE Stocks in Early January

Advanced Micro Devices has disappeared from among the most shorted stocks on the New York Stock Exchange, but that was because its listing moved to the Nasdaq. Taking its place, Transocean, with the largest rise in short interest in the top five between the December 31 and January 15 settlement dates. The four most shorted NYSE stocks each had more than 100,000 shares short at the end of the two-week period.

The number of AT&T Inc. (NYSE: T) shares short increased about 3% in the first two weeks of the year to around 288.60 million. That was the highest level of short interest in the past year, and it represents 5.6% of the float. At the current average daily volume, it would take about 12 days to cover all short positions. During the period, we undertook a bullish and bearish evaluation of AT&T for 2015, and shares slipped about 1% in the two-week period to January 15. They closed Tuesday at $32.81, about 3% lower than at the first of the year. The 52-week trading range is $31.74 to $37.48.

There was a more than 8% decrease in the short interest in Brazilian miner Vale S.A. (NYSE: VALE) during the period. That drop brought the number of shares short to more than 139.98 million, which was the lowest level of short interest since October. It would take about five days to cover all short positions. News of a surge in iron ore exports from Brazil helped buoy shares, which ended the two-week short-interest period more than 2% higher. Shares closed Tuesday at $7.42, in a 52-week range of $6.82 to $15.59.

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Transocean Ltd. (NYSE: RIG) saw a more than 8% rise in short interest to more than 110.59 million shares at a time when the stock was falling along with oil prices. That mid-month reading totaled 31.7% of the company’s float, and it was the ninth consecutive period of increasing short interest. The days to cover swelled to about seven from less than five. The share price fell about 17% in the two weeks, but it has reclaimed more than 11% since and closed at $16.98 Tuesday. Shares have traded between $14.50 and $46.12 in the past year.

Petróleo Brasileiro S.A. (NYSE: PBR), better known as Petrobras, saw the number of its shares short rise by more than 4.16 million from the end of last year to more than 108.57 million by the middle of January. That was a gain of about 4% and represents 2.9% of the total float. At the current average daily volume, it would take more than two days to cover all short positions. The petro-giant has continued to face issues related to its third-quarter financial statements. Shares ended the two-week short interest period more than 5% lower but gained almost 8% afterward. They closed Tuesday at $7.45, in a 52-week range of $5.79 to $20.94.

J.C. Penney Co. Inc.’s (NYSE: JCP) short interest retreated more than 4% to around 99.35 million in the first two weeks of the month. That was 33.1% of the float, and the first time that number has been less than 100 million since near the beginning of the holiday shopping season. The days to cover fell from more than eight to about five. Holiday sales figures appeared to have been better than many had feared. The news boosted the struggling retailer’s share price about 19% in the two-week period, though they have pulled back marginally since. Shares closed Tuesday at $7.62, in a 52-week range of $4.90 to $11.30.

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Rounding out the top 10 are Cemex SAB de C.V. (NYSE: CX), Bank of America Corp. (NYSE: BAC), Exelon Corp. (NYSE: EXC), Ford Motor Co. (NYSE: F) and General Electric Co. (NYSE: GE). The number of GE shares short rose by more than 10% during the period, lifting it back into the top 10, as Kinder Morgan dropped to 11th place.

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