Investing

The 6 Most Shorted NYSE Stocks

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The moves in the six most shorted stocks traded on the New York Stock Exchange were mostly upward again between June 15 and June 30. This seeming confidence in the short sellers came during the sluggish growth of the economy and with markets near all-time highs after a more than eight-year bull run.

The biggest rise in the number of shares short in these stocks was seen in a leading Chinese e-commerce company. But bucking the trend with a short interest decline was one of the big three Detroit automakers. It was joined by a few others at the bottom of the top 10 most shorted Nasdaq stocks as last month came to a close.

Note that the top six stocks on the list all had more than 120 million shares short at the end of the most recent settlement period.

Chesapeake Energy

The number of Chesapeake Energy Corp.’s (NYSE: CHK) shares short has risen in nearly every period so far this year, and it remains the most shorted NYSE stock again. Short interest increased most recently by about 6% to nearly 203.14 million shares. That was 22.7% of the company’s float. At the latest posted daily average trading volume, it would take about five days to cover all the short positions.

The stock caught another analyst downgrade in the most recent period. But the share price ended the two weeks only fractionally lower, though it was down about 10% at one point. The S&P 500 also saw a fractional decline in that time. The stock closed most recently at $4.67 a share, which is more than 33% lower year to date. Shares have changed hands between $4.27 and $8.20 in the past 52 weeks.

Weatherford International

Weatherford International PLC (NYSE: WFT) once again sits at the second spot on the list with more than a 3% rise in the number of shares short in the final two weeks of last month. That followed a pause in the previous period after two double-digit percentage increases in a row back in late April and early May. The nearly 153.89 million shares reported most recently represented 15.8% of the total float. The days to cover reading ended the period at around six.

One key analyst upgraded shares of this oil and gas driller late last month. Those shares were up less than 3% at the end of the two-week period, despite being more than 8% higher at one point. The share price was last seen at $3.86. That was up from the recent multiyear low of $3.39, but handily less than the 52-week high of $7.09 from back in March.

AT&T

The approximately 149.50 million AT&T Inc. (NYSE: T) shares short on the most recent settlement date was hardly any higher than the number in mid-June. It still represented 2.4% of the float, but also it was the second highest level of short interest in at least a year. As of the latest settlement date, it again would take about seven days to cover all short positions, even though the average daily volume increased.

AT&T remains a great America company paying high dividends. In the latter two weeks of last month, short sellers watched the share price drop nearly 3%. The stock closed most recently at $36.83 a share, which was more than 13% lower than at the beginning of the year. The 52-week trading range for those shares is $36.10 to $43.50.

Alibaba

Alibaba Group Holding Ltd. (NYSE: BABA) saw the number of its shares short pop about 8% from the previous period, up to the greatest level so far this year. And note that the more than 139.02 million shares reported totaled 5.5% of the Chinese e-commerce giant’s float. The daily average volume shrank during the period, and the days to cover rose from around four to about six.

Alibaba is among the companies expected to dominate the sharing economy. Its share price rose more than 4% in the latter half of June, and it added more than 5% since then. The stock hit a 52-week high of $149.30 on Wednesday but closed at $149.00, which is more than 69% higher year to date. The 52-week low of $80.37 was seen about a year ago.

Ford

For the second period in a row, short sellers shied away Ford Motor Co. (NYSE: F). The latest decline in short interest was a little more than 3%, bringing the reported number of shares short to more than 128.79 million. That represents 3.3% of the total float, and it was the seventh time this year that short interest was more than 100 million shares. It still would take four days to cover all short positions, as of the latest settlement date.

Though Ford announced big recalls during the most recent settlement period, the share price ended those two weeks only fractionally lower. However, it has inched up almost 2% in the past week and closed most recently at $11.47. That is more than 5% lower than at the beginning of the year. The shares have changed hands between $10.67 and $14.04 apiece in the past year.

J.C. Penney

J.C. Penney Co. Inc. (NYSE: JCP) saw the number of its shares short rise from 113.01 million in the previous period to more than 120.41 million. The latest reading was the greatest in the past year, the seventh in a row above 100 million, and also a whopping 41.7% of the struggling retailer’s float. The daily average trading volume increased in late June, though the days to cover stayed at about six.

J.C. Penney was dumped from the Russell 1000 index during the period. Its share price fell more than 10% early in the two-week short interest period but recovered somewhat and was only down about 4% by the end of the month. The stock closed most recently at $4.62 a share. The 52-week low seen back in May was $4.17, while the 52-week high of $11.30 was reached last August.

And the Rest

Rounding out the top 10 were CenturyLink Inc. (NYSE: CTL), Bank of America Corp. (NYSE: BAC), Sprint Corp. (NYSE: S) and General Electric Co. (NYSE: GE). All of these saw their short interest fall between the latest settlement dates, led by a double-digit percentage plunge in the number of Bank of America shares short.

Note that short sellers pounced on Pandora Media Inc. (NYSE: P) late last month, but not enough to lift it into the top 10 most shorted NYSE stocks, at least not yet. Brazilian miner Vale S.A. (NYSE: VALE) also continued to linger just outside the spotlight of the top 10.

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