In most years, the end of July would mark the beginning of the summer doldrums, but this year the markets are hitting new all-time highs. And short sellers were getting out of the way between the July 15 and July 29 settlement dates, at least when it comes to the most shorted stocks traded on the New York Stock Exchange.

Leading that trend was GE, which posted its most recent quarterly results during the period. On the other hand, Ford was the odd man out with a modest gain in the number of its shares short. Its second-quarter earnings report during the period was particularly disappointing.

Note that all the top six stocks on the list still had more than 100 million shares short at the end of the most recent settlement period.

Sprint

Short interest in Sprint Corp. (NYSE: S) has dwindled for three periods in a row, most recently around 1%, but the company held on to its place as the most shorted NYSE stock. The almost 160.87 million shares short reported most recently totaled 25.7% of the float. The days to cover dropped from 12 to four as the daily average volume surged in the final weeks of the month.

In the period, Sprint reported record subscriber growth. Its share price rose more than 10% by the end of the month, as well as about 25% further since the settlement date. The S&P 500 was rose only fractionally in the short interest period. The stock reached a 52-week high of $6.35 last week and closed at $6.18 on Tuesday. The 52-week low is $2.18.

Vale

The number of Vale S.A. (NYSE: VALE) shares short retreated by almost 5.96 million during the period, or less than 4%, to more than 153.37 million. That was the fourth period in a row of shrinking short interest. At the most recent average daily volume, it would take about five days to cover all short positions.

This Brazilian miner reported mixed results for the latest quarter. Vale’s shares ended the short-interest period more than 7% higher, though they pulled back a bit afterward. The stock closed most recently at $6.07, which is up more than 84% year to date, but only about 15% higher than a year ago. The share price has ranged from $2.13 to $6.26 in the past year.

Ford

After declining in the previous two periods, the short interest in Ford Motor Co. (NYSE: F) increased more than 2%, bringing the number of its shares short to about 147.96 million by the end of the month. That represented 3.8% of the total float, still down from a high of more than 4% in mid-March. It would take about three days to cover all short positions.

Disappointing Ford earnings reverberated in late July. Yet, the share price increased more than 2% early in the settlement period, before dropping to more than 6% lower by the end of the month. Ford shares have changed hands between $10.44 and $15.84 apiece in the past year. They were trading at $12.31 on Tuesday’s close.
GE

After a retreat of more than 16% in the previous period from the highest level year to date, the short interest in General Electric Co. (NYSE: GE) tumbled more than 11% to more than 139.82 million shares during the latter two weeks of last month. That was 1.5% of the iconic conglomerate’s float, and it would take more than three days to cover all short positions.

Analysts remained cautious on GE after its most recent earnings report, and the share price ended the two-week short interest period down more than 5%. But it has inched up fractionally in the past week to $31.30. The stock has traded between $19.37 and $33.00 a share in the past year.

Alcoa

A more than 6% pullback in Alcoa Inc.’s (NYSE: AA) number of shares short wiped out a similar gain in the previous period and resumed the six consecutive periods of retreat before that. The 120.34 million shares short at the end of the latest period represented 9.4% of the aluminum producer’s float. Due to a sharp decline in the average daily volume, the days to cover rose from about five to more than eight.

In July, Alcoa proposed a one-for-three reverse stock split. Its share price ended the short interest period less than 3% lower, though it was down about 4% at one point. The Dow Jones Industrial Average slipped fractionally to the end of the month. Alcoa shares have changed hands between $6.14 and $11.50 apiece in the past year, and the stock closed at $10.35 a share on Tuesday.

Freeport-McMoRan

The number of shares short in Freeport-McMoRan Inc. (NYSE: FCX) shrank more than 8% to more than 102.05 million on the most recent settlement date. That was the lowest level of short interest since the beginning of the year. Some 7.9% of the miner’s float was sold short by the end of the month, and it would still take about three days to cover all short positions.

Debt reduction offset Freeport’s disappointing earnings, and the share price sank more than 6% but ended the short interest period about 1% lower. The stock closed most recently at $12.09 per share, which is up more than 78% year to date. The 52-week low is $3.52, well short of the 52-week high of $14.20.

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And the Rest

Rounding out the top 10 were Alibaba Group Holding Ltd. (NYSE: BABA), Chesapeake Energy Corp. (NYSE: CHK), Petróleo Brasileiro S.A. (NYSE: PBR) and Corning Inc. (NYSE: GLW). The surprise here is Corning’s nearly 285% short interest gain, even though its earnings topped Wall Street expectations in the period.

Still lingering not far outside the top 10 are J.C. Penney Co. Inc. (NYSE: JCP) and Transocean Ltd. (NYSE: RIG).

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