The 6 Most Shorted NYSE Stocks: Sprint Back on Top

By Trey Thoelcke Updated Jan 13, 5:15AM EST · Published Jul 27, 6:40AM EDT

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The 6 Most Shorted NYSE Stocks: Sprint Back on Top — © Thinkstock

[cnxvideo id=”625493″ placement=”ros”]As the Brexit fears faded and the markets headed for new all-time highs, short sellers remained focused on their favorite stocks traded on the New York Stock Exchange. Between the June 30 and July 15 settlement dates, short interest swings among them were mostly mild and mostly downward.

Sprint managed to rise to the top of the list again during the period, despite a modest decline in the number of its shares sold short. That was because the previous list topper, General Electric, had a double-digit decline in its short interest. Among the top few most shorted NYSE stocks, only Alcoa saw a notable gain.

Note that all the top six stocks still had more than 110 million shares short at the end of the most recent settlement period.

Sprint

Even though its short interest shrank less than 4% between the settlement dates, the second period in a row of fewer shares short, Sprint Corp. (NYSE: S) has returned to the top of the NYSE list. The around 162.30 million shares short reported most recently totaled 25.9% of the total float. The days to cover increased from eight to 12 as the daily average volume dropped sharply.

Sprint is widely expected to be a laggard in 5G trials. Its share price rose more than 10% in the first weeks of this month, and then about 25% further since the settlement date. The S&P 500 gained about 3% in the short interest period. Sprint shares hit a new 52-week high of $6.28 on Tuesday. The 52-week low is $2.18.

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Vale

The number of Vale S.A. (NYSE: VALE) shares short retreated by more than 9.56 million during the period, or less than 6%, to nearly 168.90 million. That was the third period in a row of shrinking short interest. At the most recent average daily volume, it would take about seven days to cover all short positions.

This Brazilian miner says it aims to sell more iron ore to China. Vale’s shares ended the short-interest period about 6% higher, though they pulled back a bit afterward. The stock closed most recently at $5.67, which is up more than 72% year to date, but also less than 4% higher than a year ago. The share price has ranged from $2.13 to $6.26 in the past year.

After a surge of about 69% in the previous period to the highest level year to date, the short interest in General Electric Co. (NYSE: GE) retreated more than 16% to almost 167.59 million shares during the first two weeks of this month. That was 1.7% of the iconic conglomerate’s float, and it still would take more than four days to cover all short positions.

GE is among the companies buying back the most stock this year, and its share price ended the two-week short interest period up more than 4%. Yet it has fallen more than 4% in the past week to $31.47. Shares have traded between $19.37 and $33.00 in the past year.
Ford

On top of a fractional decline in the previous period, short interest in Ford Motor Co. (NYSE: F) slipped more than 2%, bringing the number of its shares short to nearly 144.38 million at the end of the latest period. That represented 3.7% of the total float, down from a high of more than 4% in mid-March. It would take about four days to cover all short positions.

Ford continues to struggle in Europe. Yet, the share price increased nearly 8% in the settlement period, and then a little more afterward. Ford shares have changed hands between $10.44 and $15.84 apiece in the past year. They were trading at $13.86 on Tuesday’s close, which is down less than 2% year to date.

Alcoa

A 6% gain in Alcoa Inc.’s (NYSE: AA) number of shares short ended six consecutive periods of retreat. The 128.70 million shares short at the end of the latest period represented 10.0% of the aluminum producer’s total float. Despite a rise in the average daily volume, the days to cover remained about five as of the most recent settlement date.

Earlier in July, Alcoa reported better-than-expected quarterly earnings. Its share price rose almost 18% in the short interest period, but it then gave up some of that gain afterward. The Dow Jones Industrial Average rose less than 4% to the middle of the month. Alcoa shares have changed hands between $6.14 and $11.50 apiece in the past year. The stock closed at $10.67 a share on Tuesday.

Freeport-McMoRan

The number of shares short in Freeport-McMoRan Inc. (NYSE: FCX) grew about 1% to more than 111.75 million on the most recent settlement date. Some 9.1% of the miner’s float was sold short by mid-month, and it would take about three days to cover all short positions. Note that short interest dropped about 14% in the previous period to the lowest level since the beginning of the year.

Freeport was expected to be a winner after the Brexit vote, and the share price ended the short interest period more than 17% higher, though it was down more than 5% at one point. The stock closed most recently at $12.68 per share. The 52-week low is $3.52, well short of the 52-week high of $14.20.

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And So On

Rounding out the top 10 were Alibaba Group Holding Ltd. (NYSE: BABA), Petróleo Brasileiro S.A. (NYSE: PBR), Chesapeake Energy Corp. (NYSE: CHK) and J.C. Penney Co. Inc. (NYSE: JCP). Chesapeake was the standout among these, with a double-digit drop in the number of its shares short. J.C. Penney’s rise in short interest was enough to bump Transocean Ltd. (NYSE: RIG) out of the top 10.

Others lingering not far outside the top 10 include AT&T Inc. (NYSE: T) and Bank of America Corp. (NYSE: BAC).

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.