The 6 Most Shorted NYSE Stocks: Ford Rises to the Top

By Trey Thoelcke Updated Jan 13, 4:17AM EST · Published Aug 25, 8:05AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The 6 Most Shorted NYSE Stocks: Ford Rises to the Top — © courtesy of Ford Motor Co.

[cnxvideo id=”509257″ placement=”ros”]In most years, August is the heart of the summer doldrums, but this year the markets are hitting new all-time highs. And short sellers were not shy between the July 29 and August 15 settlement dates, at least when it comes to the most shorted stocks traded on the New York Stock Exchange.

There were big swings, both up and down, resulting in Ford rising to the top of this list, displacing embattled Sprint. Chesapeake Energy also made a run up the list, landing in the number five spot after reporting disappointing earnings during the two weeks.

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

Ford

After a 2% or so gain in the previous period, the short interest in Ford Motor Co. (NYSE: F) increased another 9%, bringing the number of its shares short to almost 161.29 million by the middle of the month. That represented 4.2% of the total float, still down from a high of about 4.4% in mid-March. It would take about four days to cover all short positions.

Ford sales and market share have slipped recently. Its share price decreased nearly 2% in the two-week period, and a little more afterward. Ford shares have changed hands between $11.02 and $15.84 apiece in the past year. They were trading at $12.30 on Wednesday’s close, which is down more than 12% year to date.

[nativounit]

Sprint

Short interest in Sprint Corp. (NYSE: S) has dwindled for four periods in a row, most recently around 5%, allowing it to slip from its place as the most shorted NYSE stock. The approximately 152.78 million shares short reported most recently totaled 24.3% of the float. The days to cover rose from four to nine as the daily average volume dwindle in the initial weeks of the month.

Late last month, Sprint reported record subscriber growth. Its share price ended the short interest period about where it began it, though it was down about 3% at one point. The S&P 500 rose only fractionally in the first two weeks of the month. Sprint shares closed at $6.09 on Wednesday, within a 52-week range of $2.18 to $6.35.
Vale

The number of Vale S.A. (NYSE: VALE) shares short retreated by almost 25 million during the period, or more than 6%, to almost 128.46 million. That was the fifth 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.

Morgan Stanley upgraded shares of this Brazilian miner in early August. Vale’s shares rose more than 5% during the short-interest period but gave up most of that gain by mid-month. They began to recover afterward and closed most recently at $5.63. That is up around 71% year to date, but less than 27% higher than a year ago. The share price has ranged from $2.13 to $6.26 in the past year.

After retreating by more than double-digit percentages in the previous two periods from the highest level year to date, the short interest in General Electric Co. (NYSE: GE) tumbled more than 15% to about 118.35 million shares during the first two weeks of this month. That was 1.3% of the iconic conglomerate’s float, and it would take more than five days to cover all short positions.

GE has been a Dow laggard of late. The share price ended the two-week short interest period only fractionally higher, less than the meager gain in the S&P 500. It is essentially flat in the past week, ending at $31.22. Shares have traded between $23.37 and $33.00 in the past year.

Chesapeake Energy

Chesapeake Energy Corp. (NYSE: CHK) saw its short interest surge more than 21% to more than 115.75 million shares by the middle of August. That was 16.5% of the float, but note that the number of shares short was more than 200 million early this year. As of the most recent settlement date, it would take about two days to cover all short positions.

Analysts were cautious on Chesapeake after the most recent earnings report. Short sellers watched the share price sink more than 11% but then fully recover between the settlement dates. The stock closed most recently at $6.26, up handily from the multiyear low of $1.50 early this year. The 52-week high of $9.55 was seen last fall.

Alcoa

A more than 8% pullback in Alcoa Inc.’s (NYSE: AA) number of shares short came on top of a 6% decrease in the previous period. In fact, eight of the past nine periods have shown short interest declines. The more than 110.26 million shares short at the end of the latest period represented 8.6% of the aluminum producer’s float. Due to a further decline in the average daily volume, the days to cover rose from more than eight to about 10.

Alcoa is on track to split into two companies soon. Its share price ended the short interest period about 1% lower, though it was down more than 4% at one point. The Dow Jones Industrial Average rose about 1% to the middle of the month. Alcoa shares have changed hands between $6.14 and $11.50 apiece in the past year, and the stock closed at $10.04 a share on Wednesday.

[wallst_email_signup]

And the Rest

Rounding out the top 10 were Alibaba Group Holding Ltd. (NYSE: BABA), Bank of America Corp. (NYSE: BAC), Corning Inc. (NYSE: GLW) and Freeport-McMoRan Inc. (NYSE: FCX). The biggest mover here was Bank of America, with a nearly 20% gain in short interest. A marginal increase in the number of Corning shares short was nothing like the triple-digit gain in the previous period.

Fiat Chrysler Automobiles N.V. (NYSE: FCAU), Host Hotels & Resorts Inc. (NYSE: HST) and Transocean Ltd. (NYSE: RIG) also saw notable growth of short interest, but not yet enough to raise them into the top 10.

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.