September can be a volatile time for the markets, and judging by most shorted stocks traded on the Nasdaq, short sellers had mixed expectations. That is, the short interest moves among these stocks were mixed and mostly modest between the August 31 and September 15 settlement dates.
Comcast led those with shrinking short interest, with a double-digit decline in the number of its shares sold short during the two-week period. But near the bottom of the top 10, there were a few stocks that saw sharp increases in their short interest in that time.
And note that still just three Nasdaq stocks had more than 100 million shares short as of the middle of this month.
Sirius XM
The more than 242.48 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short after the first two weeks of this month was around 5 million more than on the previous settlement date, which had been the smallest number of shares short so far this year. The latest reading represented 16.8% of the total float. As the average daily volume rose in the period, the days to cover dropped from about 17 to near 12.
Warren Buffett reportedly has trimmed his stake in Sirius. The stock ended the short interest period more than 4% lower than where it began it, while the Nasdaq rose fractionally between the settlement dates. Sirius shares have been relatively flat in the past week and closed most recently at $5.44 apiece. They hit a new 52-week high of $5.89 near the end of July, and the 52-week low of $4.05 was seen last fall.
AMD
By the middle of September, Advanced Micro Devices Inc. (NASDAQ: AMD) had almost 158.11 million shares short. That was a rise of about 6% from the total on the previous settlement date, and it was second highest level of short interest so far this year. The most recent reading represented 17.9% of the company’s float. It still would take more than three days to cover all short positions.
During the period, one analyst saw little impact on AMD from cryptocurrency issues. The September 15 share price was less than 4% lower than on the previous settlement date, though the shares were down about 6% at one point. The stock closed on Tuesday at $12.45, which is about 9% lower than six months ago. Shares have changed hands between $6.22 and $15.65 apiece in the past year.
Intel
More than 118.31 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the latest settlement date. Short interest grew less than 8% during the period — on top of two previous 9% periods of growth — to the greatest number of shares short in the past year. That represented 2.5% of the company’s float. As of the latest settlement date, it would take about six days to cover all short positions.
Intel was seen as benefiting from sales of the newly revealed iPhones. Though its shares ended the short interest period with more than a 5% gain, they pulled back somewhat afterward. The most recent close at $37.47 a share compares to a 52-week trading range of $33.23 and $38.45, and it is more than 2% higher than the share price at the beginning of the year.
Opko Health
Opko Health Inc.’s (NASDAQ: OPK) short interest decreased around 2% from in the previous period to more than 76.36 million shares on the most recent settlement date. That erased the gain in the previous period, and it was 23.1% of the total float. The daily average volume increased handily during the two weeks, allowing the days to cover number to drop from about 20 to more than 13.
For well more than a year, the CEO frequently has bought batches of Opko shares. The stock closed most recently at $7.11 a share, in a 52-week trading range of $5.85 to $12.15. During the two-week short-interest period, the share price declined more than 6%. However, it has surged in the past week and is now only around 22% lower than it was six months ago.
Synergy Pharmaceuticals
Short interest at Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) totaled more than 66.78 million shares on September 15, which was more than 1% lower than on the prior settlement date. It represented a whopping 29.8% of the total float. Only twice in the past year have the number of shares short been greater. The days to cover tumbled from more than 23 to near nine during the latest period as the average daily volume surged.
This biopharmaceutical company is focused on treatments for constipation and irritable bowel syndrome. Short sellers watched the stock sink more than 9% during those two weeks and more afterward. The most recent closing share price was $2.57, which is more than 46% lower than six months ago. The shares have traded hands between $2.57 and $7.15 apiece in the past year.
Comcast
The number of Comcast Corp. (NASDAQ: CMCSA) shares short totaled almost 58.45 million at mid-month. That was more than 8 million fewer than two weeks earlier, which was the greatest level of short interest since June. The most recent figure represented 1.3% of the total float. At the posted average daily trading volume, it would take less than two days to cover all short positions.
Comcast is among the top dividend stock picks at Merrill Lynch. Short sellers watched its stock retreat about 9% in the most recent period, though it has regained some of that ground since then. Tuesday’s closing share price was $37.81, which is up more than 9% year to date. In the past year, the shares have traded between $30.02 and $42.18 apiece.
And Others
Rounding out the top 10 were Cisco Systems Inc. (NASDAQ: CSCO), Altaba Inc. (NASDAQ: AABA), Microsoft Corp. (NASDAQ: MSFT) and Novavax Inc. (NASDAQ: NVAX). And here is where the big upswings were, led by Altaba (the former Yahoo), with its short interest more than doubling in those two weeks. The number of Cisco and Microsoft shares short also grew by more than double-digit percentages.
Lingering just outside the spotlight of the top 10 most shorted Nasdaq stocks were Micron Technology Inc. (NASDAQ: MU), Mattel Inc. (NASDAQ: MAT), Oclaro Inc. (NASDAQ: OCLR) and Ascena Retail Group Inc. (NASDAQ: ASNA).
Note that Apple Inc. (NASDAQ: AAPL) slipped well out of the top 10 during the period when the new iPhones and Apple Watch were introduced.
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