Feb 24, 2016

Posted by in Stock Reports | 0 Comments

Current Short Interest of Services Stocks: The Kroger Co. (KR), Time Warner Inc. (TWX), Carnival Corporation (CCL)

Current Short Interest of Services Stocks: The Kroger Co. (KR), Time Warner Inc. (TWX), Carnival Corporation (CCL)

Short interest ratio is calculated as short interest divided by the stock’s average daily trading volume. It indicates how many days it would take for short sellers to purchase shares required for already contracted sales (called ‘covering the short position’) if the stock price increases against expectations of decline.

Looking at short interest is a good way to grasp the market’s sentiment in relation to a particular stock. High short interest ratios imply investors are expecting for a stock’s price to fall.

A low short interest ratio means that not many investors think the stock’s price will decline. This shows optimism — or at the very least a lack of pessimism — by investors. However, a high short interest ratio can have a paradoxically beneficial effect on the stock as well. Should a stock with a high short interest ratio begin to advance, the short sellers may panic and begin buying the stock to cover their shorts. The lower the stock price, the more the short sellers profit; as the stock price climbs, they lose money. This panic buying by large numbers of short sellers may result in a so-called short squeeze and take the stock price much higher.

As of 29/01/2016 short interest for The Kroger Co. (KR) stood at 28715637 shares, an increase of 3641088 shares or 12.68 percent compared to 25074549 shares on 15/01/2016. This short interest comprises 3 percent of the entire float. Short interest ratio now stands at 3 at the average volume of 9566830 shares.

According to the latest short-interest data for the two-week period ended 29/01/2016 short interest for the stock of Time Warner Inc. (TWX) increased from 17643127 shares at the end of the settlement date of 15/01/2016 to 20629602 shares, marking a growth of 2986475 shares or 14.48 percent. The current short interest accounts for 2.61 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 3.142339 as of 29/01/2016 assuming average daily trading volume of 6565046 shares.

Short interest for the shares of Carnival Corporation (CCL) rose 19.82 percent from 11133425 shares on 15/01/2016 to 13886302 shares on 29/01/2016. 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 1.707415 days. It is based on average daily trading volume of 8132938 shares.

 

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