Apr 6, 2016

Posted by in Stock Market News | 0 Comments

Key Short Interest Changes in Large-Cap Stocks: Starwood Hotels & Resorts Worldwide Inc. (HOT), Host Hotels & Resorts, Inc. (HST), EMC Corporation (EMC)

Key Short Interest Changes in Large-Cap Stocks: Starwood Hotels & Resorts Worldwide Inc. (HOT), Host Hotels & Resorts, Inc. (HST), EMC Corporation (EMC)

Short interest is the number of shares shorted of a particular stock out of the total number of shares outstanding. It is also one of the indicators of investor sentiment toward a particular stock. If the short interest for a stock increases, it can be said a bearish sentiment prevails .i.e. investors expect the stock price to go down in the future. Meanwhile, if the short interest has lowered, it can be taken as a bullish signal and the stock price is expected to go up.

When you see a large short position on a stock, you would be wise to steer clear. There are some situations where large hordes of shorts are incorrect, but those are few and far between and you would need to have attained a great wealth of information to go long.

When shorts pile into a stock, it’s because they’re all seeing something that doesn’t look right: declining revenue growth, a swing to a loss with future losses likely, industry changes that will cripple a business, debts that can’t possibly be paid, and/or bad management. There can be other potential reasons as well, but these are the most common.

As of 15/03/2016 short interest for Starwood Hotels & Resorts Worldwide Inc. (HOT) stood at 5838938 shares, a decrease of -271269 shares or -4.65 percent compared to 6110207 shares on 01/03/2016. This short interest comprises 3 percent of the entire float. Short interest ratio now stands at 1.39 at the average volume of 4203076 shares.

According to the latest short-interest data for the two-week period ended 15/03/2016 short interest for the stock of Host Hotels & Resorts, Inc. (HST) increased from 45059316 shares at the end of the settlement date of 01/03/2016 to 49389921 shares, marking a growth of 4330605 shares or 8.77 percent. The current short interest accounts for 6.75 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 4.966955 as of 15/03/2016 assuming average daily trading volume of 9943702 shares.

Short interest for the shares of EMC Corporation (EMC) fell -2.88 percent from 15147841 shares on 01/03/2016 to 14723233 shares on 15/03/2016. Investors have taken short positions on 1 percent of the total common shares of the stock that are floating on the exchange. The days-to-cover short interest ratio is now at 1.544454 days. It is based on average daily trading volume of 9532971 shares.

 

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