The 6 Most Shorted NYSE Stocks: Pfizer and Freeport-McMoRan on the Rise

By Trey Thoelcke Updated Jan 13, 3:07PM EST · Published Jan 13, 6:10AM EST

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The 6 Most Shorted NYSE Stocks: Pfizer and Freeport-McMoRan on the Rise — © Thinkstock

General Electric saw its short interest drop sharply between the December 15 and December 31 settlement dates for the second period in a row. Meanwhile, among the other most shorted stocks on the New York Stock Exchange, short sellers piled on to Pfizer and Freeport-McMoRan as the year wound to a close.

Note that the 10 most shorted NYSE stocks all had more than 100,000 shares short at the end of the most recent settlement period.

Chesapeake Energy

Short interest in Chesapeake Energy Corp. (NYSE: CHK) had grown in the previous three periods, but it took a breather late December, slipping less than 2% to more than 241.81 million. That was 36.8% of the company’s float, and the days to cover remained about 10 even though the daily average volume shrank from a three-month high. Chesapeake shares recently were downgraded. Short sellers watched the stock climb more than 21% between the settlement dates, while the S&P 500 was essentially flat. Shares closed most recently at $4.05, up from a multiyear low of $3.56 in December. The 52-week high of $21.49 was seen last February.

Sprint

Sprint Corp.’s (NYSE: S) short interest edged up a bit more than 1% in the final weeks of the month, the fourth period in a row of expanding number of shares short. The most recent reading of more than 216.12 million was 34.7% of the float, as well as the greatest number of shares short in at least a year. The days to cover jumped from 11 to 20. The FTC recently ordered Sprint to pay for “cramming,” and the share price ended the two-week period less than 2% higher, despite being up nearly 10% at one point. The stock has fallen more than 7% since then and closed Tuesday at $3.37, in a 52-week trading range of $3.10 to $5.45.
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Vale

A four-period streak of rising short interest came to an end as the number of Vale S.A. (NYSE: VALE) shares short shrank more than 6% to more than 196.53 million. At the most recent average daily volume, it would take about 12 days to cover all short positions. Some have speculated about whether this Rio de Janeiro-based company will survive the year. The miner’s shares fell about 9% but then ended the short-interest period less than 3% lower. The stock hit a multiyear low of $2.37 on Tuesday, after tumbling about 28% since the beginning of the year. The 52-week high is $9.14.
Petrobras

Petróleo Brasileiro S.A. (NYSE: PBR), better known as Petrobras, saw the number of its shares short grow by almost 2 million in the two weeks to more than 179.63 million. That was again the highest level of short interest in the past year. The days to cover rose to about 10 as the average daily volume plunged. Moody’s downgraded Petrobras in December. Its shares pulled back more than 5% in the final two weeks of the year, despite considerable volatility in the period. They closed most recently at $3.49, down almost 19% year to date. The 52-week high of $10.55 occurred last May, while the $3.33 low was seen this week.

Freeport-McMoRan

The short interest in Freeport-McMoRan Inc. (NYSE: FCX) surged another 25% or so more between the most recent settlement dates to around 154.73 million shares. That was 13.6% of the miner’s float, and it would take about three days to cover all short positions. The number of shares short has nearly doubled since the end of October. Despite a rough 2015, Freeport may have the resources to hang on until times are better. The share price rose about 2% but then surrendered that gain during the two-week period. The stock has plunged more than 39% year to date, and shares closed most recently at $4.11, after sinking to a 52-week low of $3.65 earlier in the day. The 52-week high is $23.97.

Alcoa

A nearly 7% rise brought Alcoa Inc.’s (NYSE: AA) number of shares short to more than 139.86 million at the end of the two-week period. That was on top of an almost 13% surge in the previous period, and it represented some 10.9% of the total float. The days to cover rose to about six. At least one analyst sees plenty of upside in Alcoa. The share price edged up more than 2% in the two weeks, while the Dow Jones Industrial Average slipped less than 2%. An earnings beat on Tuesday didn’t stop shares from falling to a 52-week low of $7.10. They closed at $7.28, down from a 52-week high of $17.10
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Rounding out the top 10 were General Electric Co. (NYSE: GE), Pfizer Inc. (NYSE: PFE), Transocean Ltd. (NYSE: RIG) and SunEdison Inc. (NYSE: SUNE). Pfizer rose into the top 10 on a 44% surge in the number of shares short to end 2015. AT&T Inc. (NYSE: T) also saw a bump in short interest, but not enough to lift it back into the top 10. On the other hand, short interest in GE and SunEdison shrank by double-digit percentages in the period.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.