Investing

The 6 Most Shorted NYSE Stocks

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Volatility roared back into the markets in early February, bringing with it the long overdue 10% correction. Sell-offs can be good for short sellers, depending on how they are positioned and how nimble they are. Judging by the most shorted stocks traded on the New York Stock Exchange between the January 31 and February 15 settlement dates, energy may have attracted many of those sellers.

Chesapeake Energy and Weatherford both saw the numbers of their shares short jump by double-digit percentages during those two weeks that included the panic selling. Otherwise, the short interest moves were by and large mixed and modest in the period.

Note that the six most shorted NYSE stocks all had more than 130 million shares short at the end of the most recent settlement period. In fact, all the top 10 had short interest of more than 110 million shares.

AT&T

AT&T Inc. (NYSE: T) once again tops the list, despite little change in its shares short as of the most recent settlement date. The latest reading of about 182.00 million is still down from a 52-week high of over 230 million. In fact, the short interest has shrunk in most recent periods. The latest reading again represented 3.0% of the company’s float. As mid-month, it would take around four days to cover all short positions, as the average daily trading volume increased.

The volatility earlier this month knocked AT&T stock back somewhat. In the first two weeks of February, investors watched the share price fall about 10% and recover enough to end the period less than 4% lower. The stock has been relatively flat since then and ended Tuesday’s trading at $36.87 a share, which is down about 4% from year to date. AT&T shares have traded hands between $32.55 and $42.70 in the past 52 weeks.

Chesapeake Energy

The number of Chesapeake Energy Corp.’s (NYSE: CHK) shares short has risen in many periods in the past year, but in the latest period it climbed one spot on this list. A rise of more than 18% brought short interest to more than 179.36 million, or 20.0% of this oil and gas company’s float. At the posted daily average trading volume on the settlement date, it would take about four days to cover all the short positions.

Chesapeake was a regular member of our 52-week club in the first weeks of this month. While its share price ended those two weeks more than 16% lower, the stock has reclaimed most of that loss since that time. The S&P 500 saw just a fractional increase between the settlement dates. The stock was last seen trading at $3.06 a share, which is more than 25% lower year to date. The 52-week low of $2.53 was reached earlier this month. Shares have changed hands as high as $6.59 in the past year.

Weatherford

Weatherford International PLC (NYSE: WFT) slipped to the third spot on the list despite about a 12% gain in the number of its shares sold short in the first two weeks of February. That followed a 7% bump in its short interest in the previous period. The more than 174.77 million shares reported most recently represented 17.9% of the total float. The days to cover reading ended the period at around five, as the average daily volume increased sharply.

Weatherford faced downgrades and price target cuts between the latest settlement dates. Short sellers watched the share price tumble about 22%, while the S&P 500 retreated only fractionally. Afterward, the stock tried to recover, and it closed most recently at $2.82 a share, up from a recent 52-week low of $2.62. The 52-week high, reached last March, was $7.09. The stock is now down more than 18% year to date.

Rite Aid

The reported number of Rite Aid Corp. (NYSE: RAD) shares sold short rose from almost 143.46 million to more than 146.20 million as of the most recent settlement date, the first gain in short interest so far this year. That ended five straight periods of declines. The latest figure was 13.8% of the company’s total float. The average daily trading volume shrank again in the most recent period, and the days to cover rose from about seven to nine.

Analysts did not seem too keen on Rite Aid’s turnaround prospects, even before market volatility returned. Its share price pulled back about 10% during the panic selling but ended the first two weeks of this only around 1% lower. The stock closed most recently at $2.03 a share, which was down less than 5% since the beginning of the year. Rite Aid shares have traded between $1.38 and $6.02 apiece in the past 52 weeks.

Bank of America

Bank of America Corp.’s (NYSE: BAC) short interest in the latest two-week period increased more than 6% to around 140.76 million shares. That was enough to push the stock back into the top six on this list, though it did not fully recover the 9% drop in the prior period. The latest figure represents 1.5% of the total float. As of the middle of this month, it would take at just a day to cover all short positions as the daily average volume rose to a year-to-date high.

Like so many other companies, this money center bank was knocked back on its heels during the big sell-off that started the month. Its share price ended the latest settlement period about where it began it, despite being down more than 10% at one point. The stock closed most recently at $32.33 a share. That is around 8% higher year to date. The shares have changed hands between $22.07 and this week’s $32.85 in the past year.

General Electric

General Electric Co. (NYSE: GE) saw the number of its shares short decline in the first two weeks of this month, still recovering after the 25% surge in its short interest that started the new year. The nearly 135.21 million shares reported most recently represented 1.6% of the conglomerate’s total float. The daily average volume dwindled as well, and the days to cover reading ended the period at about one.

GE was another of the stocks hit hard by this month’s panic selling and correction, and it did not recover much afterward, ending the short interest period about 7% lower. In that time, the Dow retreated more than 3%. GE’s share price was last seen at $14.50, after sinking to a 52-week low of $13.95 earlier in the week. The 52-week high, which was seen last April, was $30.54 a share. The stock now is more than 19% lower year to date.

And the Rest

Rounding out the top 10 were Ford Motor Co. (NYSE: F), Alibaba Group Holding Ltd. (NYSE: BABA), Sprint Corp. (NYSE: S) and J.C. Penney Co. Inc. (NYSE: JCP). Among these, Sprint saw the only gain in short interest and, though modest, it was enough to lift the stock back onto the top 10 list.

An almost 24% decline in the number of Snap Inc. (NYSE: SNAP) shares sold short was plenty for it to fall out of the top 10 most shorted NYSE stocks again. Meanwhile, short interest in Vale S.A. (NYSE: VALE) surged, though not quite enough for it to make the list this time.

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