Concerns about inflation and rising rates in this nine-year-old bull market were joined at the beginning of this month by fresh worries about a trade war as the administration announced new tariffs aimed especially at China. Volatility understandably spiked again. However, 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 Nasdaq, those sellers were stocking up on their favorites between the February 28 and March 15 settlement dates, as those at the top of the list all saw short interest rise in the period. Apple and Mattel led that trend, with double-digit percentage growth in the number of their shares short. Yet, Comcast and a couple of biotech stocks bucked that trend.
Note that just three Nasdaq stocks had more than 100 million shares short as of the most recent settlement date.
Sirius XM
The more than 221.04 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short after the first two weeks of this month was over 1% more than on the previous settlement date. The latest reading totaled 16.8% of the available float, and it was the second highest level of short interest so this year. As the average daily volume retreated somewhat in the period, the days to cover grew from more than 11 to over 12.
At least one analyst saw Sirius XM shares as a bargain last month. The stock ended the latest short interest period more than 2% higher than where it began it, though it has pulled back somewhat since then. The Nasdaq rose over 2% between the settlement dates as well. Like the broader markets, Sirius stock has seen a decline in the past week, and it closed at $6.32 on Monday. The 52-week low of $4.73 was reached last May, while the $6.61 multiyear high was seen recently.
AMD
By the middle of March, Advanced Micro Devices Inc. (NASDAQ: AMD) had more than 174.07 million shares short. That was 14.5 million or so more than the total on the previous settlement date, which was the lowest level of short interest since October. The latest reading represented 19.2% of the company’s float. The average daily volume increased from a year-to-date low, and the number of days it would take to cover all short positions was about two.
AMD has not been left out of the speculation about semiconductor mergers and acquisitions. Its March 15 closing share price was about 6% lower than on the previous settlement date, despite being up around 4% at one point in the interval. The stock closed trading most recently at $10.44 a share, which is about 5% lower year to date. Shares have changed hands at between $9.70 and $15.65 apiece in the past year.
Intel
Around 104.19 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the most recent settlement date. The figure grew by more than 5% from the prior period, when short interest was less than 100 million shares for the first time since last July. The latest reading represented 2.2% of the company’s float. As of mid-month, it would take more than three days for investors to cover all their short positions.
The recent failure of the Broadcom-Qualcomm deal could be an opportunity for Intel. The shares ended the short interest period more than 2% higher, though they had been up around 8% at one point. Intel closed most recently at $52.48 a share, which compares with a recent multiyear high of $53.78. The 52-week low is $33.23. And the share price now is about 12% higher year to date.
24/7 Wall St.Apple
Apple Inc.’s (NASDAQ: AAPL) short interest increased more than 14% from in the previous period to more than 67.27 million shares on the most recent settlement date. That was the greatest number of shares short reported in at least a year, and it represented 1.3% of the total float. The daily average trading volume shrank for the second straight period, and the days to cover number ticked up to a bit more than two.
There has been some question recently over whether Apple is losing its grip on loyal iPhone users. The stock closed most recently at $172.77 a share, in a 52-week trading range of $138.6 to $183.50. By the end of the two-week short-interest period, the share price was a slightly lower, despite being up more than 2% days earlier. The stock currently trades in the same neighborhood as at the beginning of the year.
Micron Technology
The number of Micron Technology Inc. (NASDAQ: MU) shares short totaled more than 65.90 million on the latest settlement date. That was a more than 5% gain in the two weeks, and it represented 6.0% of the total float. It was also the fourth time in the past year that more than 60 million shares were short. The average daily trading volume pulled back again in the latest period, but the days to cover figure remained at a more than one.
During the short interest period, Micron started to look like it could be the hottest tech stock of the year. By the end of the two weeks, the share price was more than 21% higher, hitting a 52-week high of $63.42 in that time. The stock has dropped more than 7% in the past week and ended Monday’s trading at $55.56 a share, which is still more than 27% higher than at the start of the year. The 52-week low is $26.36.
Mattel
The number of Mattel Inc. (NASDAQ: MAT) shares short swelled more than 12% and totaled over 64.02 million on the latest settlement date. That was more than enough to lift the stock back onto the top six most shorted list, and it represented 18.7% of the total float. Still, the average daily trading volume pulled back somewhat and the days to cover figure remained around 10.
The collapse of retailer Toys “R” Us is a major concern for Mattel investors. By the end of the latest short interest period, the share price was more than 13% lower, though it had been up by about 7% at one point early in the month. The stock ended trading most recently at $13.02 a share, in a 52-week range of $12.71 to $25.97. The share price currently is more than 18% lower than at the beginning of the year.
And Others
Rounding out the top 10 were Opko Health Inc. (NASDAQ: OPK), Synergy Pharmaceuticals Inc. (NASDAQ: SGYP), Comcast Corp. (NASDAQ: CMCSA) and TherapeuticsMD Inc. (NASDAQ: TXMD). The only gainer among these was TherapeuticsMD, but short interest moves in all four were marginal.
Just outside the spotlight of the top 10 most shorted Nasdaq stocks as of the most recent settlement date were Microsoft Corp. (NASDAQ: MSFT), Cisco Systems Inc. (NASDAQ: CSCO) and Novavax Inc. (NASDAQ: NVAX).
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