The market gains in early March began to dwindle in the latter half of the month as worries about a potential trade war grew and big tech stocks began to sell off. It was not only the end of the month, but the end of the calendar quarter, so there was little going on in the way of earnings reports to help buoy the markets. 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 looking for direction between the March 15 and March 29 settlement dates, as moves were mixed. The standouts in the top 10 were Intel, with a double-digit percentage retreat in the number of its shares short, and Sirius XM, with a pullback almost as large. Other moves in the top 10 were more modest.
Note that now just two Nasdaq stocks had more than 100 million shares short, as of the most recent settlement date.
Sirius XM
The nearly 200.18 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short after the final two weeks of last month was over 9% less than on the previous settlement date. The latest reading totaled 15.2% of the available float, and it was the lowest level of short interest in the past year. Though the average daily volume retreated for the fifth period in row, the days to cover remained near 12.
LL Cool J launched his classic hip-hop station on Sirius late last month. The stock ended the latest short interest period less than 3% lower than where it began it, though it has recovered somewhat since then. The Nasdaq fell over 6% between the settlement dates. Like the broader markets, Sirius stock has grown modestly in the past week, and it closed at $6.27 most recently. The 52-week low of $4.73 was reached last May, while a $6.61 multiyear high was seen recently.
AMD
By the end of March, Advanced Micro Devices Inc. (NASDAQ: AMD) had more than 181.91 million shares short. That was 7.8 million or so more than the total on the previous settlement date, and it was the highest level of short interest in at least a year. The latest reading represented 20.1% of the company’s float. The average daily volume decreased sharply, so the number of days it would take to cover all short positions rose from two to more than three.
AMD was not left out of recent speculation about semiconductor mergers and acquisitions. Its March 29 closing share price was about 12% lower than on the previous settlement date, despite being up more than 2% earlier in the period. The stock closed trading most recently at $9.98 a share, which is about 9% lower year to date. Shares have changed hands at between $9.04 and $15.65 apiece in the past year.
Intel
More than 90.37 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the most recent settlement date. That figure was down more than 13% from the prior period, and it was only the second time in the past six months that short interest was less and 100 million shares. The latest reading represented 1.9% of the chipmaker’s float. As of the month’s end, it would take less than three days for investors to cover all their short positions.
Intel was the top-performing Dow Jones industrial during the first quarter. Its shares ended the latest short interest period only about 1% higher, though they had been up almost 4% at one point. Intel closed most recently at $51.27 a share, which compares with last month’s multiyear high of $53.78. The 52-week low is $33.23. And the share price now is more than 9% higher year to date.
24/7 Wall St.Opko Health
Opko Health Inc.’s (NASDAQ: OPK) short interest increased around 4% from in the previous period to more than 64.98 million shares on the most recent settlement date. That was the third period in a row with more than 60 million shares short, and it represented 19.9% of the total float. At the latest daily average trading volume, and the days to cover figure was more than 12.
For well more than a year, the CEO frequently has bought batches of Opko shares. The stock closed most recently at $3.08 a share, in a 52-week trading range of $2.66 to $7.90. By the end of the two-week short-interest period, the share price was a more than 5% lower, despite being up about 10% early in the period. The stock currently is down around 38% since the beginning of the year.
Micron Technology
The number of Micron Technology Inc. (NASDAQ: MU) shares short totaled more than 62.67 million on the latest settlement date. That was a nearly 5% decline in the two weeks, and it represented 5.7% of the total float. It was also the fifth time in the past year that more than 60 million shares were short. The average daily trading volume pulled back in the latest period, but the days to cover figure remained at a one.
This remains a popular stock not only with analysts but also with institutional investors. By the end of the two weeks, the share price was almost 13% lower, and it has continued to retreat since that time. The stock was relatively flat in the past week and ended Tuesday’s trading at $50.48 a share. That is still more than 15% higher than at the start of the year, as well as in the middle of the 52-week trading range of $26.36 to $63.42
Mattel
The number of Mattel Inc. (NASDAQ: MAT) shares short shrank more than 2% and totaled over 62.29 million on the latest settlement date. That was the second-highest level of short interest so far this year, and it represented 18.2% of the total float. The average daily trading volume pulled back just a bit, and the days to cover figure remained less than 10.
The collapse of retailer Toys “R” Us remained a major concern for Mattel investors. By the latest short interest settlement date, the share price was more than 4% lower, most of that pullback coming early in the period. The stock ended trading most recently at $13.52 a share, in a 52-week range of $12.71 to $25.97. The share price currently is more than 15% lower than at the beginning of the year.
And Others
Rounding out the top 10 were Comcast Corp. (NASDAQ: CMCSA), Synergy Pharmaceuticals Inc. (NASDAQ: SGYP), TherapeuticsMD Inc. (NASDAQ: TXMD) and Novavax Inc. (NASDAQ: NVAX), which snuck onto the list with a 10% bump in its short interest. The moves in the other two biotechs went the other way but were marginal.
Note that Apple Inc. (NASDAQ: AAPL) also saw a sharp decline in its shares short between the settlement dates. Consequently, it fell out the top 10 most shorted Nasdaq stocks list. Lingering along with it outside the spotlight of the top 10 are tech stocks Microsoft Corp. (NASDAQ: MSFT) and Marvell Technology Group Ltd. (NASDAQ: MRVL).
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