Apr 6, 2016

Posted by in Stock Market News | 0 Comments

Tracking short-interest levels in 3 NASDAQ stocks: Applied Materials, Inc. (AMAT), TiVo Inc. (TIVO), eBay Inc. (EBAY)

Tracking short-interest levels in 3 NASDAQ stocks: Applied Materials, Inc. (AMAT), TiVo Inc. (TIVO), eBay Inc. (EBAY)

Short interest is a direct consequence of short sales, which are governed by special rules and regulations. Short interest is an important indicator that helps you measure investor sentiment about a particular stock or the market in general. Like many financial measures, short interest must be evaluated within the broader context and can mean different things under different circumstances.

Brokerages must report all short sales to the legal authorities, who keep track and publish a figure called short interest. This figure is the sum of all shares that have been borrowed to sell short but have not been replaced. The short interest ratio equals short interest, divided by the average daily volume of the stock.

All shares that have been shorted must be bought back eventually. In fact, most short sales are covered relatively soon, as waiting too long may result in the original owner attempting to sell the shares. When this happens, the brokerage may either try to locate other shares to borrow or force the short seller to immediately buy back the stock. The short interest ratio tells you how quickly the short sellers can, in theory, cover their short positions.

As of 15/03/2016 short interest for Applied Materials, Inc. (AMAT) stood at 14563573 shares, an increase of 2381535 shares or 16.35 percent compared to 12182038 shares on 29/02/2016. This short interest comprises 1 percent of the entire float. Short interest ratio now stands at 1.3 at the average volume of 11209523 shares.

According to the latest short-interest data for the two-week period ended 15/03/2016 short interest for the stock of TiVo Inc. (TIVO) increased from 5359145 shares at the end of the settlement date of 29/02/2016 to 5731740 shares, marking a growth of 372595 shares or 6.5 percent. The current short interest accounts for 6.18 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 4.850251 as of 15/03/2016 assuming average daily trading volume of 1181741 shares.

Short interest for the shares of eBay Inc. (EBAY) fell -1.02 percent from 23179882 shares on 29/02/2016 to 22946846 shares on 15/03/2016. Investors have taken short positions on 2 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 2.079322 days. It is based on average daily trading volume of 11035734 shares.

 

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