Investing

The 6 Most Shorted NYSE Stocks

Wikimedia Commons

The nearly eight-year old bull market endures, with markets recently hitting all-time highs. And how are short sellers reacting? Moves in the most shorted stocks traded on the New York Stock Exchange between the January 31 and February 15 settlement dates were mixed and mostly mild.

However, there was a new king of the hill among the most shorted NYSE stocks, as the sellers piled on pharmaceutical giant Pfizer during the period.

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

Pfizer

The approximately 137.21 million Pfizer Inc. (NYSE: PFE) shares short by the middle of February was a whopping 300% more than on the prior settlement date. It represented 2.3% of the conglomerate’s total float. Note that was highest level of short interest since last April, and it was over 300 million last March. As of the latest settlement date, it would take more than five days to cover all short positions.

Pfizer’s recent earnings miss was due in part to the impact of acquisitions. Its shares were up more than 5% by the end of the most recent short interest period, while the Dow was more than 3% higher in that time. The stock closed Monday at $34.28, which also was more than 5% higher than at the beginning of the year. The 52-week trading range is $28.74 to $37.39.

Chesapeake Energy

After about a 9% gain in Chesapeake Energy Corp.’s (NYSE: CHK) short interest in January, it saw another 7% or so rise in the first two weeks of this month. The around 119.37 million shares short reported most recently were 13.6% of the float. Note that short interest was about 234 million shares a year ago. As of the most recent settlement date, the days to cover reading was about four.

New guidance mid-month month helped buoy shares. Between the latest settlement dates, the share price increased almost 2% but then ended up in the red by about 2%. The stock pulled back more afterward and closed most recently at $5.62. That was still up handily from the multiyear low of $2.53 almost a year ago, but lower than the 52-week high of $8.20 seen in mid-December.

Sprint

The short interest has declined in six of the previous seven periods. The number of Sprint Corp. (NYSE: S) shares short retreated by less than 16,000 shares between the most recent settlement dates, slipping further from the top spot on the list. The more than 119.26 million shares reported totaled 18.9% of the float. The days to cover remained at about six during those two weeks.

Like its peers, Sprint now has an unlimited data plan. Sprint’s share price ended the two weeks a little more than 1% lower than where it began, though it was down more than 9% at one point. The share price has climbed less than 6% year to date and closed most recently at $8.91. The stock hit a 52-week high of $9.65 earlier this year, well up from the 52-week low of $3.08 almost a year ago.

Weatherford International

The king of the hill in the previous period was Weatherford International PLC (NYSE: WFT). Following a surge of about 14% in late January, the number of shares short retreated about 3% most recently to over 118.10 million. That figure represented 12.2% of this oil and gas driller’s total float. At the most current daily average, it would take about four days to cover all the short positions.

Weatherford posted a smaller-than-expected net loss at the beginning of the month. Its shares ended the two-week period about 18% higher, most of that gain coming early in the period. The stock closed most recently at $5.77, which is almost 16% higher year to date. The share price has ranged from $3.73 to $8.49 in the past 52 weeks.

Alibaba

Alibaba Group Holding Ltd. (NYSE: BABA) saw its short interest dwindle less than 2% to more than 113.65 million shares by the middle of the month. That ended three straight periods of increasing numbers of shares short, and it totaled 4.7% of the float. As of the latest settlement date, it would take about 14 days to cover all short positions, up from the previous nine.

During the period, Alibaba expanded its partnership with Mattel. Short sellers watched the share price rise more than 2% and then give up most of that gain during the short interest period. The stock closed most recently at $103.60 a share, which is about 18% higher since the beginning of the year. The 52-week trading range is $66.86 to $109.87.

Bank of America

After four consecutive periods of Bank of America Corp.’s (NYSE: BAC) number of shares short retreating, they reversed course in February. The more than 106.65 million shares short reported most recently (less than a 2% rise) 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 about one.

This is one of the banks likely to benefit from the expected deregulation. The shares ended the two weeks more than 8% higher, while the S&P 500 was up about 3% in that time. The stock has changed hands between $12.05 and $24.95 a share in the past year. It closed at $24.57 on Monday, up more than 11% year to date.

And the Rest

Rounding out the top 10 were AT&T Inc. (NYSE: T), General Electric Co. (NYSE: GE), Seadrill Ltd. (NYSE: SDRL) and CenturyLink Inc. (NYSE: CTL). All four saw the numbers of their shares pop, from about 5% for Seadrill to almost 15% at GE.

Note that Ford Motor Co. (NYSE: F) and J.C. Penney Co. Inc. (NYSE: JCP) also saw notable increases in short interest, but not enough to lift them into the top 10 most shorted NYSE stocks. Lingering outside the spotlight along with them are Host Hotels & Resorts Inc. (NYSE: HST) and Vale S.A. (NYSE: VALE).

Furthermore, the most shorted Nasdaq stocks included AMD, Intel and Sirius XM.

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.