Investing

The 6 Most Shorted NYSE Stocks

courtesy of J.C. Penney Co. Inc.

The Trump rally sputtered as the new year got under way, leaving the Dow Jones Industrial average short of the 20,000 milestone. In that time, investors, like everyone else, anticipated the start of a new White House regime. By and large, short interest moves were mild but positive among the most shorted stocks traded on the New York Stock Exchange between the December 30 and January 13 settlement dates. However, at the bottom of the top 10 list there were a couple of notable changes.

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

Sprint

The short interest decline in the previous four periods ended this month. The number of Sprint Corp. (NYSE: S) shares short had a more than 6% gain between the most recent settlement dates. The more than 141.04 million shares reported totaled 22.2% of the float. At the most current daily average, it would take about eight days to cover all the short positions.

Sprint said at the end of last year that it would add 5,000 jobs in the United States. Sprint’s share price ended the two weeks more than 2% higher than where it began, though it was up more than 4% at one point. The share price has climbed about 47% in the past six months and closed most recently at $9.19. The stock hit a 52-week high of $9.25 this week, well up from the 52-week low of $2.45 almost a year ago.

Alibaba

Alibaba Group Holding Ltd. (NYSE: BABA) saw its short interest grow more than 3% to around 114.18 million shares by the middle of the month. That reclaimed a similar gain in the previous period, as well as totaled 4.7% of the float. As of the most recent settlement date, it would take about 10 days to cover all short positions.

Deutsche Bank named Alibaba as its top China internet pick for 2017. Short sellers watched the share price surge more than 10% and then pull back slightly between the settlement dates. The stock closed most recently at $104.06 a share, which is almost 25% higher than six months ago. The 52-week trading range is $59.25 to $109.87.

Bank of America

After a nearly 22% reduction in Bank of America Corp.’s (NYSE: BAC) number of shares short in the previous period brought it to the lowest level since September, there was hardly any change in the first weeks of this month. The more than 107.40 million shares short reported most recently still represented 1.1% of the money center bank’s float. The average daily trading volume increased in the period but the days to cover remained at less than one.

This bank posted better-than-expected earnings earlier this month. Short sellers watched the shares rise around 4% in the short interest period, while the S&P 500 increased less than 2% in that time. The stock has changed hands between $10.99 and $23.42 a share in the past year, and it closed at $23.37 on Wednesday.

Chesapeake Energy

After an almost 13% decline in Chesapeake Energy Corp.’s (NYSE: CHK) short interest in late December, almost half of drop was recovered in the first two weeks of this month. The nearly 107.38 million shares short reported most recently were 12.3% of the float. Note that short interest was more than 240 million shares a year ago. As of the most recent settlement date, it still would take about three days to cover all short positions.

The company continued to sell assets last month. Between the latest settlement dates, the share price increased more than 2% but then ended up in the red by less than 2%. The stock pulled back more afterward and closed most recently at $7.13, still up handily from the multiyear low of $1.50 early last year. The 52-week high of $8.20 was seen in mid-December.

Weatherford International

Following two consecutive periods of little change, the number of Weatherford International PLC (NYSE: WFT) shares short rose more than 4% to almost 106.95 million. That figure represented 11.0% of this oil and gas driller’s total float. The days to cover fell from about six to less than four during those two weeks.

Rising oil prices this year are expected to lift oilfield services stocks like this one. Its shares ended the two-week period more than 5% higher, though they were up more than 18% at one point. The stock closed most recently at $5.42. That still is down nearly 9% from six months ago, though. The share price has ranged from $3.73 to $8.49 in the past 52 weeks.

Vale

The number of Vale S.A. (NYSE: VALE) shares short was essentially flat, compared to the previous settlement date. The nearly 104.07 million shares reported was only about half the number posted a year ago, but up from a year-to-date low of less than 100 million just a month ago. At the most recent average daily volume, it would take about four days to cover all short positions.

At least one analyst predicts shares of this Brazilian miner could double this year. Short sellers watched the share price jump more than 25% during the short-interest period, most of the gain coming in the final few days. The stock closed most recently at $10.78. It is up around 90% in the past six months. The share price has ranged from $2.14 to last week’s $10.96 in the past year.

And the Rest

Rounding out the top 10 were AT&T Inc. (NYSE: T), Seadrill Ltd. (NYSE: SDRL), Ford Motor Co. (NYSE: F) and J.C. Penney Co. Inc. (NYSE: JCP). The mover here was a double-digit percentage gain in J.C. Penney’s short interest — the second in a row — allowing it to rise into the top 10.

General Electric Co. (NYSE: GE) was the one that dropped out of the top 10 to make room for J.C. Penney. GE saw its second consecutive double-digit pull back in the number of shares short. Lingering outside the top 10 along with GE were Host Hotels & Resorts Inc. (NYSE: HST) and CenturyLink Inc. (NYSE: CTL).

In addition, check out the most shorted Nasdaq stocks, which included Sirius XM, Intel and Yahoo.

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