Technology

Apple Short Interest Drops Despite Share Price Problems

Douglas A. McIntyre

Published: January 13, 2016 6:41 am

Last Updated: January 13, 2020 3:07 pm

The short interest in Apple Inc. (NASDAQ: AAPL) dropped 8.1% in the period that ended December 31 to 68.2 million. Apple ranks eighth on the list of most shorted shares of companies traded on Nasdaq.

The size of the short bet tapered off despite deep and growing concern about Apple’s momentum, particularly in terms of iPhone sales. In the past month, its share price has dropped 11.1% to $100, and it is down 9% for the past year. That compares to a gain of 114.1% over the past five years, as well as to a 74.2% improvement in the S&P 500 over the same period.

Although several analysts have upgraded Apple recently, the overall sentiment has been poor. Forbes summed up the problem:

BMO Capital, Canaccord Genuity, Cowen, JMP Securities and Pacific Crest decreased their estimates and price targets for Apple. BMO’s Tim Long cut his price target from $142 to $133, Canaccord Genuity’s Michael Walkley cut his from $160 to $146, Cowen’s Timothy Arcuri went from $130 to $125, Alex Gauna went from $165 to $150 and Andy Hargreaves cut his from $142 to $132.