The new year got off to a strong start, despite the bull market being well more than eight years old, due in part to optimism in the wake of the new tax law. So how were short sellers positioning themselves ahead of the coming earnings reporting season? Judging by the most shorted stocks traded on the Nasdaq between the December 29 and January 12 settlement dates, they were mostly loading up on their favorites.

Bucking that trend, however, was Intel, with a notable drop in the number of its shares short during those two weeks. On the other hand, leading the trend was Micron Technology, with the only double-digit percentage gain among the most heavily shorted Nasdaq stocks.

Note that still just three Nasdaq stocks had more than 100 million shares short as of the most recent settlement date.

Sirius XM

The approximately 231.51 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short after the first two weeks of the year represented a gain of more than 7 million from the previous settlement date. The latest reading totaled 16.2% of the available float. Note too that the average daily volume jumped in the period, so the days to cover decreased from more than 12 to less than nine.

Sirius XM exceeded is 2017 subscriber guidance and issued a new outlook for the year this month. The stock ended the short interest period around 4% higher than where it began it, despite being up more than 6% at one point. The Nasdaq saw more than a 5% gain between the settlement dates. Sirius shares closed most recently at $5.73 apiece. That is less than the 52-week high of $5.89 seen near the end of July. The 52-week low of $4.64 was reached almost a year ago.

AMD

By the middle of January, Advanced Micro Devices Inc. (NASDAQ: AMD) had almost 175.83 million shares short. That was up around 5% from the total on the previous settlement date, and it reclaimed most of the decline in the previous period. The latest reading represented 19.5% of the company’s float. The average daily volume was the highest it has been since October, and the number of days it would take to cover all short positions slipped from five to less than three.

AMD is a top pick at Merrill Lynch for the first quarter. Its January 12 closing share price was about 16% higher than on the previous settlement date, most of that gain coming in the first couple of trading days of the year. The stock closed trading on Wednesday at $12.71 a share, which is more than 15% higher year to date. Shares have changed hands at between $9.70 and $15.65 apiece in the past year.

Intel

More than 106.38 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the most recent settlement date. The figure shrank by more than 8% in the period to the smallest reading since last August. The most recent figure represented 2.3% of the company’s float. As of middle of this month, it still would take about two days for investors to cover all short positions.

Intel had a somewhat shaky start to the new year. The stock ended the short interest period more than 6% lower, though it was down more than 8% at one point during those two weeks. Intel closed most recently at $45.51 a share, which is down from a 52-week high of $47.64 in December. The 52-week low is $33.23. The share price now is almost 3% lower year to date.

Synergy Pharmaceuticals

Short interest at Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) totaled over 80.41 million shares by mid-January, after a gain of less than 5 million from on the prior settlement date. Still, that represented a whopping 32.7% of the total float, and it was the fifth consecutive period with more than 70 million. The days to cover shrank from about 14 to less than 12 during the latest period as the average daily volume ended four consecutive periods of decline.

This biopharmaceutical company is focused on treatments for constipation and irritable bowel syndrome. Short sellers watched the stock climb more than 11%, fall almost 8% into the red, but then end those two weeks up more than 6%. The most recent closing share price was $2.54, which is more than 3% higher year to date. The shares have changed hands between $1.68 and $7.15 apiece in the past year.

Micron Technology

The number of Micron Technology Inc. (NASDAQ: MU) shares short totaled more than 65.83 million on the latest settlement date. That was up around 15% from two weeks earlier to the highest level in at least a year, and it represented 5.0% of the total float. The average daily trading volume grew as well, though the days to cover figure remained at a more than one.

Baird sees Micron as a best idea technology pick for 2018. By the end of the short-interest period, the share price was about 3% higher, despite being up nearly 13% earlier in the month. The stock ended Wednesday’s trading at $43.08 a share, in a 52-week range of $22.64 to $49.89. The share price currently is about 36% higher than it was six months ago.

Comcast

Comcast Corp.’s (NASDAQ: CMCSA) short interest barely grew from in the previous period to more than 64.40 million shares on the most recent settlement date. Still, that was the highest number of shares short since November, and it represented 1.4% of the total float. The days to cover figure slipped a little but remained more than three. Note that the 52-week peak in short interest was more than 78 million shares last May.

Comcast has been recognized as one of the most hated companies in America. Short sellers watched the stock rise more than 5%, but with most of that gain coming in the last couple of days in the two-week period. The stock retreated a bit afterward and closed most recently at $42.99. That is still up about 9% in the past six months. The 52-week trading range is $34.78 to $44.00.

And Others

Rounding out the top 10 were Opko Health Inc. (NASDAQ: OPK), Mattel Inc. (NASDAQ: MAT), TherapeuticsMD Inc. (NASDAQ: TXMD) and Cisco Systems Inc. (NASDAQ: CSCO). The only one of these four that had a rise in short interest in the first two weeks of the year was Cisco. The downswings at Mattel and Opko were marginal.

Note that Apple Inc. (NASDAQ: AAPL) saw a modest rise in its total shares short, but that was not enough to lift it onto the top 10 list. Also lingering outside the spotlight of the top 10 most shorted Nasdaq stocks were Ascena Retail Group Inc. (NASDAQ: ASNA), Groupon Inc. (NASDAQ: GRPN) and Novavax Inc. (NASDAQ: NVAX).

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

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