While volatility has roared back into the markets in February, bringing with the first 10% correction in ages, everything looked sunny and bright back in January. Sell-offs can be good for short sellers, depending on how they are positioned. But it looks like they shied away from many of the most shorted stocks traded on the Nasdaq between the January 12 and January 31 settlement dates.
The short sellers of Cisco, Comcast and Mattel may have had the right idea, in that they piled on these stocks during the latter weeks of last month. Otherwise, the short interest in the most shorted Nasdaq stocks dwindled during the period.
Note that still just three Nasdaq stocks had more than 100 million shares short as of the most recent settlement date.
Sirius XM
The more than 216.10 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short after the final two weeks of last month represented a decline of more than 15 million from the previous settlement date. The latest reading totaled 15.2% of the available float. Though the average daily volume retreated in the period, the days to cover remained less than nine.
At least one analyst has boosted its target price on Sirius XM recently. The stock ended the short interest period more than 11% higher than where it began it. The Nasdaq saw about a 1% gain between the settlement dates. Like the broader markets, Sirius has retreated some in the past week. Its shares closed most recently at $5.82 apiece. That is less than the 52-week high of $6.28 seen last month. The 52-week low of $4.69 was reached about a year ago.
AMD
By the end of January, Advanced Micro Devices Inc. (NASDAQ: AMD) had almost 164.59 million shares short. That was down more than 6% from the total on the previous settlement date, and it was the lowest level of short interest since October. The latest reading represented 18.3% of the company’s float. The average daily volume shrank in that time, but the number of days it would take to cover all short positions remained less than three.
AMD posted strong quarterly results at the end of the short interest period. Its January 31 closing share price was more than 14% higher than on the previous settlement date, though it has retreated more than that since then. The stock closed trading on Friday at $11.31 a share, which is still about 3% higher year to date. Shares have changed hands at between $9.70 and $15.65 apiece in the past year.
Intel
More than 104.76 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the most recent settlement date. The figure shrank by more than 1% in the period to the smallest reading since last August. The most recent figure represented 2.2% of the company’s float. As of the end of last month, it still would take about more than two days for investors to cover all short positions.
Analysts were generally pleased with Intel’s most recent quarterly results. Yet 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 $43.95 a share, which is down from a 52-week high of $50.85 at the end of January. The 52-week low is $33.23. The share price now is more than 6% lower year to date.
24/7 Wall St.Comcast
Comcast Corp.’s (NASDAQ: CMCSA) short interest jumped almost 34% from in the previous period to more than 86.19 million shares on the most recent settlement date. That was the highest number of shares short in at least a year, and it represented 1.9% of the total float. However, the days to cover figure remained more than three as the average daily volume rose somewhat.
Comcast has been recognized as one of the most hated companies in America. While its share price ended the two-week period about where it began it, it was more than 2% higher at one point in the interval. The stock retreated more than 6% in the past week and closed most recently at $38.57. That is only down about 5% in the past six months. The 52-week trading range is $34.78 to $44.00.
Synergy Pharmaceuticals
Short interest in Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) totaled over 76.50 million shares by the end of January, after a pullback of nearly 4 million from the prior settlement date. Still, that represented a whopping 31.1% of the total float, and it was the sixth consecutive period with more than 70 million shares short. The days to cover shrank from less than 12 to more than eight during the latest period as the average daily volume grew.
This biopharmaceutical company is focused on treatments for constipation and irritable bowel syndrome. Short sellers watched the stock climb about 16%, fall more than 16% into the red, but then end those two weeks down only about 8%. The most recent closing share price was $1.97, which is more than 19% lower year to date. The shares have changed hands between $1.68 and $6.45 apiece in the past year.
Mattel
The number of Mattel Inc. (NASDAQ: MAT) shares short totaled almost 60.49 million on the latest settlement date. That was up more than 9% from two weeks earlier to the highest level since November, and it represented 17.7% of the total float. The average daily trading volume grew as well, and the days to cover figure dropped from almost 14 to more than eight.
During the period, Mattel posted disappointing results, despite strong Barbie brand numbers. By the end of the short interest period, the share price was more than 5% higher, though it was up by about 24% at one point. The stock ended this past Friday’s trading at $17.27 a share, in a 52-week range of $12.71 to $26.30. The share price currently is almost 8% higher than it was six months ago.
And Others
Rounding out the top 10 were Cisco Systems Inc. (NASDAQ: CSCO), Micron Technology Inc. (NASDAQ: MU), Opko Health Inc. (NASDAQ: OPK) and TherapeuticsMD Inc. (NASDAQ: TXMD). The only gainer here was Cisco, with a surge of more than 21% in its short interest. Micron saw a double-digit percentage decline in the number of its shares short, and it slipped out of the top six.
Note that Apple Inc. (NASDAQ: AAPL) moved further out of the top 10 with a notable shrinkage in its short interest in the most recent period. But lingering outside the spotlight of the top 10 most shorted Nasdaq stocks were Groupon Inc. (NASDAQ: GRPN) and Microsoft Corp. (NASDAQ: MSFT).
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
