Late summer and early fall can make some investors nervous, and it can make for some interesting moves by short sellers. It turns out that they shied away from the two most shorted stocks traded on the Nasdaq between July 31 and August 15, but moved on other short seller favorites.
While most of the moves among the most shorted Nasdaq stocks were fairly mild, the world’s largest semiconductor maker saw a notable pop in the number of its shares short. But perhaps most unexpected was a penny stock leaping into the top six, a small health care company that’s looking for a reverse stock split.
Also note that just three Nasdaq stocks had more than 100 million shares short as of the middle of August.
Sirius XM
The more than 251.42 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short after the first two weeks of this month was around 15 million less than on the previous settlement date, which was the greatest number of shares short since March. The latest reading represented 17.5% of the total float. As the average daily volume declined in the period, the days to cover dropped from near 11 to more than 13.
Warren Buffett reportedly has trimmed his stake in Sirius. The stock ended the short interest period more than 4% higher than where it began it, though it was down about 6% at one point in the interval. The Nasdaq slipped only fractionally by the settlement date. The shares closed on Wednesday at $5.58 apiece, after hitting a new 52-week high of $5.89 near the end of July. The 52-week low of $4.05 was seen last summer.
AMD
By mid-August, Advanced Micro Devices Inc. (NASDAQ: AMD) had more than 147.70 million shares short. That was a retreat of about 3% from the total on the previous settlement date, and it ended three consecutive periods of rising short interest. The most recent reading represented 16.8% of the company’s float. It would take more than two days to cover all short positions.
AMD is seen as an increasing threat to larger rival Intel. The August 15 share price was more than 4% lower than on the previous settlement date, though the shares had been down about 11% a couple of days earlier. The stock closed most recently at $12.50, which is more than 10% higher year to date. Shares have changed hands between $5.66 and $15.65 apiece in the past year.
Intel
More than 100.81 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the latest settlement date. Short interest grew around 9% during the period, rising above 100 million for the third time this summer. It was also some 2.1% of the company’s float. The year-to-date peak was more than 102 million, reported back in June. As of the latest settlement date, it would take about four days to cover all short positions.
Brian Krzanich was one of the CEOs who quit the president’s American Manufacturing Council. Though the shares ended the short interest period less than 2% higher, they have pulled back more than that since then. The most recent close at $34.71 a share compares to a 52-week trading range of $33.23 and $38.45, and it is around 5% lower than six months ago.
Opko Health
Opko Health Inc.’s (NASDAQ: OPK) short interest increased more than 4% from in the previous period to more than 76.18 million shares on the most recent settlement date. That was the second greatest number of shares short since the beginning of the year, as well as 22.9% of the total float. The daily average volume increased between the settlement dates, dropping the days to cover number from a little more than 19 to about 17.
For well more than a year, the CEO frequently has bought batches of Opko shares. The stock closed most recently at $6.30 a share, in a 52-week trading range of $5.85 to $12.15. During the two-week short-interest period, the share price dropped more than 5%, though it recovered a bit afterward. The stock now is more than 25% lower than it was six months ago.
Synergy Pharmaceuticals
Short interest at Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) totaled 63.27 million shares or so on August 15, which was more than 5% higher than on the prior settlement date. It represented a whopping 28.2% of the total float and was the greatest number of shares short since April. The days to cover tumbled from less than 22 to around 10 during the latest period as the average daily volume jumped.
This biopharmaceutical company is focused on treatments for constipation and irritable bowel syndrome. Short sellers watched the stock retreat more than 25% during those two weeks to a new 52-week low of $2.85. The most recent closing share price was $3.05, which is more than 44% lower than six months ago. The shares hit a 52-week high of $7.15 at the end of January.
Delcath Systems
In every period since February, the number of Delcath Systems Inc. (NASDAQ: DCTH) shares short has increased. Short interest totaled more than 59.97 million shares on the latest settlement date. That was a more than 41% jump from two weeks earlier, and it represented 12.0% of the total float. Note that less than 400,000 shares were short at the beginning of the year. At the most recent average daily trading volume, it would take a little more than a day to cover all short positions.
This interventional oncology company filed for a reverse stock split during the period. Short sellers watched the stock drop more than 28% but then end the period about 3% higher. The shares rose more afterward and closed most recently at $0.12 apiece. That is down more than 86% year to date. The 52-week trading range is $4.31 to $0.01.
And Others
Rounding out the top 10 were Micron Technology Inc. (NASDAQ: MU), Novavax Inc. (NASDAQ: NVAX), Oclaro Inc. (NASDAQ: OCLR) and Comcast Corp. (NASDAQ: CMCSA). The standout among these was Comcast, with a more than 9% drop in the number of its shares short.
Another surprise move was an almost 14% surge in the short interest in Seagate Technology PLC (NASDAQ: STX), though it fell just short of landing in the top 10 most shorted Nasdaq stocks. Others just beyond the spotlight of the top 10 were Ascena Retail Group Inc. (NASDAQ: ASNA), Plug Power Inc. (NASDAQ: PLUG) and Cisco Systems Inc. (NASDAQ: CSCO).
Note that short interest in Apple Inc. (NASDAQ: AAPL) again rose somewhat, but it still remains well outside the list of the top 10.
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