October is often a volatile time for the stock market, and this year investors have plenty to worry about, including rising interest rates, weakness in international markets, growing effects of the trade war with China and a mixed bag from corporate earnings, as well as the upcoming elections and the holiday season. All this has the big indexes retreating from all-time highs.
Judging by the most shorted stocks traded on the Nasdaq between the September 28 and October 15 settlement dates, those sellers were cautious overall. The short interest moves were mostly modest and downward. Bucking that trend during those two weeks, however, were Starbucks and Helios and Matheson Analytics, with sizable upswings in the numbers of their shares sold short.
Note that just four Nasdaq stocks had more than 100 million shares short, as of the most recent settlement date.
Sirius XM
The approximately 187.52 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares held short after the first two weeks of this month were more than 8% lower than on the previous settlement date, or 14.6% of the available float. That was also the lowest level of short interest in at least a year. The average daily volume pulled back from a year-to-date high in the prior period, and the days to cover ticked up from less than six to about seven.
Sirius hiked its dividend by 10% during the short interest period. The stock ended the first two weeks of this month trading about 3% lower, and it has fallen off even more sharply since then. The Nasdaq slipped more than 7% between the settlement dates. Sirius stock closed at $5.65 on Wednesday, after retreating more than 17% in the past 90 days. The 52-week low of $5.17 was reached early this year, while the $7.70 multiyear high was seen back in June.
AMD
By the middle of October, Advanced Micro Devices Inc. (NASDAQ: AMD) had more than 121.63 million shares short. That was more than 12 million less that the total on the previous settlement date, as well as the lowest level of short interest in the past year. That reading still represented 13.1% of the company’s float. And though the average daily volume retreated, the number of days it would take to cover all short positions remained about one.
Stifel likes AMD despite volatility and weakness in the chip stocks overall. Short sellers watched the share price pull back about 14% in those two weeks, most of the decline in the first few days of the month. The stock closed trading most recently at $22.79 a share, which is more than 44% higher than three months ago, but down from last month’s 52-week high of $34.14. Shares have changed hands at as low as $9.04 apiece in the past year.
Qualcomm
Around 107.92 million Qualcomm Inc. (NASDAQ: QCOM) shares were sold short as of the most recent settlement date. That represented 7.4% of the chipmaker’s float and was a retreat of about 15% from in the prior period, but still much more than the fewer than 30 million shares seen back in August. As of the mid-month, it would take more than six days for investors to cover all their short positions at the posted average daily volume.
Qualcomm still has that generous dividend yield that has doubled in the past five years. The October 15 closing share price was around 11% lower than on the previous settlement date. It has slipped around 2% in the past week, and the stock was last seen trading at $62.62 a share, down from the 52-week high of $76.50 reached last month. The 52-week low is $48.56 per share. And the share price is around 9% higher than it was 90 days ago.
24/7 Wall St.Caesars Entertainment
After rising for 16 straight periods, the short interest in Caesars Entertainment Corp. (NASDAQ: CZR) finally took a pause. In fact, the number of shares short shrank by more than 3 million. The more than 106.40 million shares posted for the mid-month settlement date represented 19.2% of the total float, and it was the fourth consecutive period with more than 100 million shares short. The days-to-cover figure fell from over nine to about seven as the average daily volume increased.
Caesars has been the subject of merger speculation recently. Its share price ended the first two weeks of this month more than 14% lower, despite being up more than 2% at one point. The stock ended Wednesday’s session at $8.47 per share, which is down about 26% over the past 90 days. Its 52-week trading range is $8.45 to $14.50, and that low was seen back in August.
Starbucks
More than 87.30 million Starbucks Corp. (NASDAQ: SBUX) shares were sold short as of the most recent settlement date. That represented 6.7% of the coffee chain’s float, and it was almost 248% more than in the prior period, as well as a year-to-date high level of short interest. As of the middle of this month, it would take more than seven days for investors to cover all their short positions, at the highest average daily volume since June.
Starbucks named a new chief financial officer during the short interest period. The October 15 closing share price was only fractionally higher than on the previous settlement date, though it had been up about 4% earlier in the period. The stock closed most recently at $58.06 a share, which is more than 14% higher than 90 days ago. Shares have traded hands at between $47.37 and $61.94 apiece in the past 52 weeks.
Helios and Matheson Analytics
Helios and Matheson Analytics Inc.’s (NASDAQ: HMNY) short interest grew by more than 14% from in the previous period to more than 76.38 million on the most recent settlement date. That was by far the greatest number of shares short in the past year, and it represented 12.0% of the total float. Note that short interest was less than a million shares as recently as July. The daily average trading volume surged as well in the latest period, and the days to cover figure remained less than one.
The company’s MoviePass arm continues to struggle with what many see as an unworkable business model. The stock was more than 9% higher as of the latest settlement date, though it jumped almost 230% at one point due to funding rumors. The stock was last seen trading at less than two cents per share, essentially at its 52-week low. That is after the company effected a 10-for-one reverse stock split back in July.
24/7 Wall St.And Others
Rounding out the top 10 were Intel Corp. (NASDAQ: INTC), TherapeuticsMD Inc. (NASDAQ: TXMD), Opko Health Inc. (NASDAQ: OPK) and Novavax Inc. (NASDAQ: NVAX). Short interest moves among these were mixed and fairly modest.
A consequence of Starbucks leaping up the list was that Comcast Corp. (NASDAQ: CMCSA) was pushed out of the top 10 most shorted Nasdaq stocks. Others lingering outside the spotlight of the top 10 were MiMedx Group Inc. (NASDAQ: MDXG) and Synergy Pharmaceuticals Inc. (NASDAQ: SGYP).
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